Suppose the supply of Malaysian rubber increases. If U.S.producers purchase this rubber,in the United States,this would cause a

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An increase in the supply of Malaysian rubber would lead to a decrease in its price, making it cheaper for U.S. producers to purchase. This would decrease production costs for U.S. firms, causing a rightward shift of the SRAS (short-run aggregate supply) curve. This is because, with lower production costs, firms would be willing to produce more output at every given price level. Therefore, a rightward shift in the SRAS curve would lead to lower prices and higher output levels, resulting in a rightward shift of the AD (aggregate demand) curve.

Suppose the Supply of Malaysian Rubber Increases