Firms Are Most Likely to Increase Prices in Response to an Increase

question 31

Multiple Choice

Firms are most likely to increase prices in response to an increase in aggregate demand when:

• A) the aggregate demand curve is quite steep
• B) the aggregate supply curve is steep
• C) the aggregate supply curve is quite flat
• D) the aggregate demand curve is quite flat

---

Definitions:

Dizygotic Twins

Also known as fraternal twins, are two siblings born from separate eggs and fertilized by separate sperm.

Evolutionary Psychologists

Researchers who study the evolutionary basis of human behavior and mental processes, often focusing on how evolutionary principles explain contemporary human thinking and behavior.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful by others.

Potential Mate

An individual considered by another as a possible partner in a romantic or sexual relationship, based on certain desirable attributes.