In the Short Run, an Increase in the Average Price

Multiple Choice

In the short run, an increase in the average price level causes

A) profits to fall, and thus total production to decline.
B) profits to rise, and thus total production to increase.
C) profits to rise, and thus total production to decline.
D) input costs to fall, and thus total production to rise.
E) input costs to fall, and thus total production to decline.