Exhibit 10-4 -The Graph in Exhibit 10-4 Shows A(n)

question 52

Multiple Choice

Exhibit 10-4
-The graph in Exhibit 10-4 shows a(n)

• A)increase in short-run aggregate supply
• B)increase in long-run aggregate supply
• C)decrease in short-run aggregate supply
• D)decrease in long-run aggregate supply
• E)decrease in aggregate quantity demanded

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Definitions:

Farm Prices

The prices at which agricultural products are sold by farmers, influenced by supply, demand, subsidies, and market conditions.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Demand Graph

A visual representation of the quantity of goods consumers are willing and able to buy at various prices, usually depicted by a downward-sloping curve.