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Answer:

A supply shock reduces supply at each and every price. This creates an excess of demand at the existing price. ... At the new price, demand and supply are brought into equilibrium through a contraction of demand (the rationing effect) and an extension of supply (the incentive effect).

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Answer: "A supply shock reduces supply at each and every price. This creates an excess of demand at the existing price. ... At the new price, demand and supply are brought into equilibrium through a contraction of demand (the rationing effect) and an extension of supply (the incentive effect)." -EconomicsOnline

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