What type of demonstration is this? Suppose the price level falls but - ProProfs Discuss
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What type of demonstration is this? Suppose the price level falls but suppliers only notice that the price of their particular product has fallen. Thinking there has been a fall in the relative price of their product, they cut back on production.  



A. Sticky-wage theory of the short-run aggregate-supply curve
B. Sticky-price theory of the short-run aggregate-supply curve
C. Misperceptions theory of the short-run aggregate-supply curve
D. Classical dichotomy theory of the short-run aggregate-supply curve

This question is part of Macroeconomics [Ch. 2
Asked by Emy_, Last updated: May 26, 2020

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John Smith

John Smith

Answered Feb 12, 2017

Misperceptions theory of the short-run aggregate-supply curve
 

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