The following table shows the aggregate supply and demand data for a country. If input prices decrease and AS shifts to the right by 3,000 units at each price level. What will the new price equal?

the new price is 100.

Explanation:

The table shows that increase in aggregate supply decreases the aggregate demand and increases the prices of the product while if decrease occurs in aggregate supply, it increases the aggregate demand and decreases the prices of the substance. So if the aggregate supply decreases from 4000 to 3000 so the new price of the product also decreases from 200 to 100 because there is a direct relationship between price and aggregate supply. If one decreases the other automatically decreases and vice versa.

the answer is b, encourage free trade

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