The 2011 Tsunami Caused Japan's

question 99

Multiple Choice

The 2011 tsunami caused Japan's

• A) SAS and LAS curves to both shift leftward.
• B) SAS curve to shift leftward, but Japan's LAS curve was unchanged.
• C) SAS and LAS curves to both shift rightward.
• D) SAS curve to shift rightward, but Japan's LAS curve was unchanged.
• E) aggregate quantity supplied to decrease.

---

Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Costs

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

Contribution Margin

The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and to generate profit.

Fixed Costs

Costs that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.