Use the Following Figure to Answer the Questions : Figure9

question 103

Multiple Choice

Use the following figure to answer the questions : Figure9.5:

-A movement from Point A to Point B in Figure 9.5 would result in

• A)A decrease in aggregate demand.
• B)A decrease in both aggregate demand and aggregate supply.
• C)An increase in aggregate demand.
• D)An increase in aggregate demand and a decrease in aggregate supply.

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Definitions:

Cost Curves

Graphical representations of how the costs of producing goods or services change with varying levels of output.

Perfectly Competitive

Referring to a market structure where there are many buyers and sellers, all selling homogeneous products, with no barriers to entry or exit, leading to price determination by supply and demand forces alone.

Monopolistically Competitive

A marketplace setup in which various enterprises deal in goods that are alike but not identical, affording them some degree of control in the market.

Cost Curves

Graphical representations showing the relationship between the cost of producing goods or services and the quantity produced.