The effect of an increase in the price level on the aggregate-demand curve is represented by a a. shift to the right of the aggregate-demand curve. b. shift to the left of the aggregate-demand curve. c. movement to the left along a given aggregate-demand curve. d. movement to the right along a given aggregate-demand curve.

C. Movement to the left along a given aggregate demand curve

Explanation:

Demand is the quantity of a good or service consumers are willing to buy at a given price over a given period of time. Price and demand tend to have a negative relationship. As price of a product increases, demand decreases as it is now more expensive and less affordable. On the other hand, when price decreases, demand increases as it is now cheaper than before.

To answer the question, as the price of a product increases, the quantity demanded falls, hence causing the leftward movement along the demand curve. A fall in price on the other hand, will cause a rightward movement along the demand curve.

Any other factor other than price such as a change in population, availability of substitutes and price of complementary products can cause a shift in the demand curve. If the factor is favorable, it causes a right-hand shift and if it is unfavorable, it causes a left-hand shift.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.