The following table shows the aggregate supply and demand data for a country. If input prices decrease and AS shifts to the right by 3,000 units at each price level. What will the new price equal? Question options:

A. 600

B. 800

C. 300

D. 400

The aggregate demand and aggregate supply are the total amounts of goods and services that the customers and shopkeepers are willing to buy or the shopkeepers are willing to sell in the market at the prevailing price for the customers and by the customers.  

The new price level will be C. 300.

Option C. 300 is correct because when the economy faces the situation of an increase in supply, it experiences the situation of an increase in prices. The supply is increased in order to increase the revenue of the firm with the parallel arrangement with the supply.

Options:

A. 600

B. 800

D. 400

These options are not correct because they do not give the correct answer as per the increase in the supply by the higher units. These are not properly defining the shift of the supply curve by higher units and fluctuations.

To know more about the new price level and the aggregate demand and supply, refer to the link below:

link

C. 300

Explanation:

Aggregate supply refers to the total supply of goods available in the market. The aggregate supply curve will shift to the right when input price is decreased or production level increases. Aggregate supply demonstrates a relationship between total quantity that firm produces to sell and price level of that output. The wage rate, unemployment, inflation and few other factors also impact the shift of aggregate supply curve.

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