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

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.