Suppose There Is a Drop in the Price of an Important

question 94

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

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