Refer to the Graph Shown

question 85

Multiple Choice

Refer to the graph shown. A movement from A to B is most likely to be caused by:

• A)an increase in input prices.
• B)a decrease in input prices.
• C)an increase in aggregate demand.
• D)a decrease in aggregate demand.

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Definitions:

Market Price

Market Price is the current price at which a good or service can be bought or sold in a marketplace.

Short Run

This is a period during which at least one factor of production is fixed, typically used in economic analyses to describe immediate effects of changes.

Produce

Agricultural products, especially fresh fruits and vegetables, that are grown for consumption.

Price

The fund requirements to procure a product or service.