An increase in the prices of goods in the short run will:
A) increase producers' profit per unit.
B) decrease producers' profit per unit.
C) lead to a movement along the AD curve.
D) reduce output.

Question

Quizplus · Accepted Answer

In the short run, an increase in the prices of goods typically leads to higher revenue per unit sold, assuming costs remain constant, thus increasing producers' profit per unit.

An Increase in the Prices of Goods in the Short