A higher price for oil shifts the
A) SAS curve leftward.
B) LAS curve leftward.
C) SAS curve rightward.
D) AD curve rightward.

Question

Quizplus · Accepted Answer

A higher price for oil typically increases production costs for many companies, leading to a decrease in the aggregate supply. This is represented by a leftward shift of the Short-Run Aggregate Supply (SAS) curve, as businesses are able to supply less at any given price level.

A Higher Price for Oil Shifts the