Question

In the long run, once people have had time to adjust their long-term commitments, an increase insupply and a higher price level will no longer lead to expansion of quantity supplied . The forces that generate the increase in quantity supplied in the short run be present in the long run. Costs that are temporarily fixed as a result of contractual agreements will once long-term contracts expire and are renegotiated. When this happens, resource prices will product prices, which the incentive to produce.?

Answer 1

Product prices will be increased by resource price. A further explanation is given below.

Step-by-step explanation:

• When individuals have already had time, throughout the longer term, to change certain long-term obligations. A rise in population, as well as a higher level of costs, can no doubt mean an increase in the amount generated. Throughout the long term, the powers causing the rise in the sum usually provided mostly in the shorter term would not be available.
• When the long-term current expires and has been tried to negotiate, expenditures that are already temporarily set as a part of the contractual deal will increase. If this continues, the resource price could well raise the price of additional goods, which should not modify the desire to manufacture.