Use the figure below to answer the following question(s).
Figure 10-4
-Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices?
A)I
B)F
C)G

Question

Use the figure below to answer the following question(s).
Figure 10-4 
-Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices?
A)I 
B)F 
C)G

Quizplus · Accepted Answer

A decrease in resource prices would lower production costs, shifting the short-run aggregate supply curve to the right, leading to a new short-run equilibrium at a point like G, where output is higher and prices are lower than at the initial equilibrium point F.

Use the Figure Below to Answer the Following Question(s)