# Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ? Correct Answer: A. misperceptions theory of the short run aggregate supply curve. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?

Direct Answer & Quick Reference

The correct option is **A. misperceptions theory of the short run aggregate supply curve**.

A. misperceptions theory of the short run aggregate supply curve **(Correct Answer)**

B. classical dichotomy theory of the short run aggregate supply curve

C. sticky price theory of the short run aggregate supply curve

D. sticky wage theory of the short run aggregate supply curve

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Verified Key: A. misperceptions theory of the short run aggregate supply curve
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