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.

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Definitions:

Clayton Act

A U.S. law enacted in 1914 aimed at promoting competition among businesses by prohibiting certain types of business practices.

Business Practices

The methods, tactics, and strategies that companies use to conduct business, interact with customers, and compete in the market.

Federal Trade Commission Act

is a U.S. law established in 1914 to promote consumer protection and prevent anticompetitive business practices.

Antitrust Law

Legislation aimed at preventing monopolies and promoting competition among businesses.