In a market where businesses are earning high profits, new entrants will cause the supply curve to shift to the _________ and thus cause the market price to _________.

Refer to Scenario 19-1. The value added of CANOES-R-US for each canoe equals

A) $1,200. B) $800. C) $500. D) $400.

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.