Use the Figure Below to Answer the Following Question

question 40

Multiple Choice

Use the figure below to answer the following question.

Figure 26.3.4
-Which of the following will lower the price level for sure?

• A)The AD curve shifts rightward and the SAS curve shifts leftward.
• B)The AD curve shifts rightward and the SAS curve remains unchanged.
• C)The SAS curve shifts leftward.
• D)The LAS curve shifts leftward.
• E)None of the above.

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Definitions:

Profit Maximizer

A strategy or process employed by businesses to increase their net profits to the highest possible level given their resources, constraints, and market conditions.

U-Shaped Average

This term seems unclear; possibly referring to the 'U-shaped' curve of the average cost, which decreases, reaches a minimum, and then increases with production volume.

Price Elasticity

Evaluating how price changes for a good translate into variations in consumer interest.

Cost of Entry

The initial capital and expenses required to start a business or enter a market.