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Gnoma [55]
3 years ago
13

Explain why the as curve has the slope you calculated as a result of the "sticky price theory".

Business
1 answer:
erik [133]3 years ago
5 0
The sticky output theory states that in the short-run as the prices are increasing, the aggregate quantity will be upward slopping. In this case, it is happening in the same way. As the price increased from $150 to $160, the mixed supply is increased from $16,100 to $16,200.
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Direct, upward sloping

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The supply curve is a graphical presentation of the relationship between price and quantity supplied.  The supply curve is upward sloping. It originates from the bottom left corner, showing how quantities vary along the curve at different prices. Quantity supplied increases as the price rise.

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