If a Pill Is Discovered That Allows People to Work

question 94

Multiple Choice

If a pill is discovered that allows people to work twice as fast as they would ordinarily work, then the aggregate supply curve will

• A) shift to the left.
• B) shift to the right.
• C) become vertical.
• D) not change.

---

Definitions:

Quantity Supplied

The actual amount of a good or service producers are willing to sell at some specific price.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, holding other factors constant.

Price-elastic

Refers to the responsiveness of the demand for a good to a change in its price; highly price-elastic goods see significant changes in demand when prices fluctuate.

Shifts to the Right

A phrase indicating an increase in supply or demand in economic graphs, typically showing improvement or growth.