The Short-Run Aggregate Supply Curve Is Upward Sloping for All

question 154

Multiple Choice

The short-run aggregate supply curve is upward sloping for all of the following reasons except:

• A)some firms adjust their markup in response to an increase in demand.
• B)some firms adjust their production in response to an increase in demand.
• C)some markets are posted-price markets.
• D)all inputs are fully utilized in the short run.

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Definitions:

Guaranteed Residual Value

The pre-determined value at which a leased asset is guaranteed to be worth at the end of the lease term, important for lease agreements.

Contingent Rentals

Lease payments that are not fixed but are instead based on the occurrence of a certain event or situation.

Sales-type Lease

A leasing arrangement in which the lessor recognizes immediate profit on the leased asset, often used in scenarios where the lessor is also the manufacturer or dealer of the equipment.