Changes in the Quantity Used of Existing Inputs Affect Aggregate

question 56

True/False

Changes in the quantity used of existing inputs affect aggregate quantity supplied, while changes in the quality of inputs affect both long-run and short-run aggregate supply.

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Definitions:

Equilibrium Quantity

The amount of products or services available and sought after at the equilibrium price, where the supply meets demand in the marketplace.

Complements

Goods or services that are often used together such that an increase in demand for one leads to an increase in demand for the other.

Equilibrium Price

The cost at which consumer demand for a product matches the amount manufacturers are willing to supply.

Equilibrium Quantity

The volume of commodities or services provided and required at the price where supply equals demand.