The long-run supply curve would be perfectly elastic when:
A. An increase in demand does not cause a change in product price
B. An increase in demand causes an increase in product price
C. A decrease in demand causes an increase in short-run supply
D. A decrease in demand causes an increase in product price
A. An increase in demand does not cause a change in product price
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If salt has a ________, then ________ pay most of any tax levied on salt
A) high elasticity of supply; sellers B) low elasticity of demand; buyers C) high elasticity of demand; buyers D) low elasticity of supply; buyers
Explain how the money market determines the equilibrium interest rate
What will be an ideal response?
A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?
A) medium of exchange B) standard of deferred payment C) store of value D) unit of account
The Coase theorem is significant because it
A. implies that no transaction costs are associated with solving externalities. B. shows that property rights can be assigned. C. shows that under certain conditions externalities can be corrected in the market without resorting to nonmarket means. D. a and b