The Sticky Price Explanation of the Short-Run Aggregate Supply Curve

Multiple Choice

The sticky price explanation of the short-run aggregate supply curve says that when the average price level rises,

A) some firms will immediately pass the higher prices to consumers.
B) because of adjustment costs associated with changing prices, some firms will not raise their prices immediately which may temporarily boost their sales.
C) firms will raise their output prices by more than the increase in the average price level to make up for the shortfall in sales.
D) consumers are unwilling to pay higher prices resulting in a decrease in aggregate demand.