If the actual price level is greater than the expected price level reflected in long-term contracts, (?)?

A. firm owners will find production less profitable than they had expected and will decrease the quantity of output supplied.

B. firm owners will find production more profitable than they had expected and will increase the quantity of output supplied.

C. firm owners, because they are making less profit than they had expected, will increase the quantity of output supplied.

D. resource owners, because they are making a lower profit than they had expected, will decrease the quantity of output supplied.

Answer:
B. firm owners will find production more profitable than they had expected and will increase the quantity of output supplied.

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