For This Question,assume That Expectations of P and a Are

question 24

Multiple Choice

For this question,assume that expectations of P and A are correct.Now suppose that there is a 4% increase in A.Given this information,which of the following will occur?

• A)the PS relation will shift up by 4%.
• B)the WS relation will shift up by less than 4%.
• C)the WS relation will shift down by 4%.
• D)the PS relation will shift down by 4%.