Suppose There Is a Drop in the Price of an Important

question 104

Multiple Choice

Suppose there is a drop in the price of an important factor input.What will be the effect on the aggregate supply curve?

• A)There will be movement to the left,along the AS curve.
• B)The AS curve will shift to the left.
• C)There will be movement to the right,along the AS curve.
• D)The AS curve will shift to the right.
• E)There will be no change in the AS curve.

---

Definitions:

Unpleasant Truth

A fact or reality that is difficult to accept or confront due to its distressing, uncomfortable, or disagreeable nature.

Reaction Formation

A psychological defense mechanism where an individual acts in a manner opposite to their actual feelings.

Social Zone

A spatial concept in social psychology referring to the comfortable distance for interactions among acquaintances or in professional settings.

Coworkers

Coworkers are individuals who work together in the same organization or on the same team, often sharing tasks, goals, and workplace challenges.