Shifts in the aggregate supply curve can be caused by Select one: a. the wealth effect. b. technological innovation. c. the foreign price effect.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 8CQ
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Shifts in the aggregate supply curve can be caused by
Select one:
a. the wealth effect.
b. technological innovation.
c. the foreign price effect.
 
(24)

In a perfectly competitive market, if a firm raises the price of its product from the prevailing market price of $179 to $199, it

Select one:
a. would likely result in a substantial loss of sales to competitors.
b. will likely cause the firm to reach its shutdown point immediately.
c. is a sure sign the firm is raising the given price in the market.
d. will cause the firm to recover some of its opportunity costs.
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