Answer:
1. Rise
2. Reducing
3. Fall below
4. Rises above
Explanation:
1. Sales from catalogues will fall because people will demand less as a result of the catalogue price being higher than the actual price.
2. As the rules of Supply and Demand opine, the Catalogue companies will have to reduce supply in response to a decrease in demand.
3. The natural output quantity will be more than the output supplied. have attached a graph and a table to show an example using the figures.
4. The short-run quantity of output supplied by firms will rise above the natural rate of output when the actual price level rises above the price level that people expected as shown by the graph.
