Question

Problem 24

Answer 1

Introduction

It is a curve that represents firms and entities in an economy that shows the oppressive rates in this field. When the prices became high, the slope moves upwards to the increasing prices in the market to show more outputs. Consumer preferences and demand are also some factors that shift the curve towards the left. Along with energy price, there are more inputs that effects the SRAS curve i.e, cost of labor, cost of importation, that can also be used for other products.