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:

Intoxicants

Substances that can cause intoxication, impacting mental or physical faculties, including alcohol and narcotics.

Physically Addictive

Refers to substances or behaviors that lead to a physiological dependence, compelling individuals to continue their use or engagement to avoid withdrawal symptoms.

Crack Addiction

A severe substance use disorder resulting from the regular use of crack cocaine, characterized by a powerful, short-term high and significant physical and psychological dependence.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause addiction and severe health consequences.