In the Short Run, an Unexpected Increase in Prices Will

question 91

Multiple Choice

In the short run, an unexpected increase in prices will

• A) reduce resource prices and increase the quantity of goods supplied.
• B) decrease the productive capacity of firms and decrease the quantity of goods supplied.
• C) increase the profits of firms, thereby leading them to expand output.
• D) increase the profits of firms, thereby leading them to reduce output.

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Definitions:

Dorsiflexion

The action that reduces the angle between the top part of the foot and the shin by pulling the foot upwards towards the shin.

Automatic Responses

Involuntary reactions to stimuli, not requiring conscious thought, such as reflex actions.

Subconscious Responses

Reactions that occur without conscious thought, often reflexes or actions triggered by stimuli below the level of conscious awareness.

Voluntary

Referring to actions or movements under conscious control by the individual.