Why does the SRAS curve shift due to changes in the prices of factors of production, if the short run is the "time when the price of FoP are fixed"?   why does the SRAS curve shift due to changes in the prices of factors of production (e.g change in wage rate, change in price of raw materials, change in the price of imports), if the short run definition is the "period of time when the prices of the factors of production are fixed" ?  

Expert Answers

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I think that the reason that you are having trouble is that you do not, in my opinion, have the correct definition for "short run."

In texts that I have used for teaching economics the short run is not defined exactly the way you are using the term.  You say that the prices of the factors of production are fixed.  My books tend to say that the prices of some factors are fixed.

For example, look at the definition for short run given in the following link.  I hope that helps.

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