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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Definitions:

Parallel Circuit

An electrical circuit in which the components are connected in parallel, providing multiple paths for the current.

Phase Angle

A measurement, often in degrees or radians, indicating the difference in phase between two waveforms.

Parallel Circuit

An electrical circuit configuration where components are connected alongside each other, leading to the same voltage across all components but different current through each.

Inductive Reactance

The opposition that inductors present to current change in AC circuits, measured in Ohms.