Why Is the Aggregate-Supply Curve Upward Sloping in the Short

question 43

Multiple Choice

Why is the aggregate-supply curve upward sloping in the short run?

• A) because people buy less when prices go up
• B) because prices adjust fast to balance supply and demand
• C) because wages adjust fast to stabilize standards of living
• D) because some producers believe that only the price of their product has changed

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Definitions:

Buyer's Readiness

The stages a potential purchaser goes through before deciding to buy a product, including awareness, knowledge, liking, preference, conviction, and purchase.

Qualifying Leads

The process of determining the likelihood that a potential customer has interest, as well as the authority and financial capacity, to complete a purchase.

Health Insurance

A type of insurance that covers the cost of an insured individual's medical and surgical expenses.

Telemarketing

A method of prospecting in which salespeople telephone potential customers.