Why Is the AS Curve Upward-Sloping

question 78

Multiple Choice

Why is the AS curve upward-sloping?

• A)Because firms will produce more if prices are higher,despite no increase in profits.
• B)Because firms will experience higher profits at higher prices and will therefore produce more.
• C)Because aggregate demand rises with higher prices.
• D)Because the LAS curve is also upward sloping.

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Definitions:

Toluene

A colorless, water-insoluble liquid hydrocarbon of the aromatic series, used as a solvent and in the manufacture of various chemicals.

NaCN

Sodium cyanide, a highly toxic chemical compound used primarily in gold mining, as well as in other industrial processes.

Methyl Magnesium Bromide

An organometallic compound used as a reagent in the formation of carbon-carbon bonds in organic synthesis.

Ethyl Acetate

An organic compound used as a solvent in many applications including printing inks, varnishes, and in the production of perfumes and fruits flavors.