Which of the Following Would Cause an Increase in Long-Run

question 137

Multiple Choice

Which of the following would cause an increase in long-run aggregate supply?

• A) The price level increases.
• B) The price level decreases.
• C) Firms and workers expect the price level to fall.
• D) Firms and workers expect the price level to rise.
• E) The stock of capital increases.

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Definitions:

Price Discrimination

Practice of charging different prices to different consumers for similar goods.

Electricity Sales

The volume of electrical energy sold, typically measured in kilowatt-hours (kWh), to end users or consumers.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.