The Short- Run Aggregate Supply Curve

question 26

Multiple Choice

The short- run aggregate supply curve

• A)is vertical.
• B)is horizontal.
• C)has a negative slope.
• D)has a positive slope.

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Definitions:

Consumer Surplus

The contrast between the overall amount consumers are willing to pay for a good or service and the total they actually pay.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Consumer Surplus

The rift between what consumers are economically prepared to spend on a service or product and their actual spending.

Consumer Surplus

The divergence between the total consumers can and are willing to pay for a product or service and what they truly pay.