Question: P A B AD 2 AD, Graph with X-axis labeled Y and the Y-axis labeled P. A single line with a negative slope starts near

 P A B AD 2 AD, Graph with X-axis labeled Y

P A B AD 2 AD, Graph with X-axis labeled Y and the Y-axis labeled P. A single line with a negative slope starts near the top left corner of the graph and goes straight to the lower right corner at roughly a -45 degree angle. This line is labeled AD1. A second line, parallel to the first but shifted to the right, is labeled AD2. On the AD1 line, there are two points, labeled Point A and Point B. Point A is farther to the right than Point B. Refer to the figure above. Holding all else constant, an increase in firms' expected future profits would be represented by a movement from O AD2 to AD1 AD, to AD2 O point B to point A O point A to point B

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