Other Factors Held Constant, an Increase in Resource Prices Will

question 97

Multiple Choice

Other factors held constant, an increase in resource prices will shift the aggregate:

• A) demand curve leftward.
• B) demand curve rightward.
• C) supply curve leftward.
• D) supply curve rightward.

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Definitions:

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on quality, price, and brand.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and no single entity able to influence prices.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Breaking Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.