A supply curve that is parallel to the horizontal axis suggests that:
A. the industry is organized monopolistically.
B. the relationship between price and quantity supplied is inverse.
C. a change in demand will change price in the same direction.
D. a change in demand will change the equilibrium quantity but not price.
Answer: D
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Why does marginal cost eventually rise as output increases?
What will be an ideal response?
The money supply is controlled by the
A) New York Stock Exchange. B) Federal Reserve System. C) stock of gold in the economy. D) President of the United States.
The fundamental reason to study economics is to study
a. how choices are made. b. how production is determined. c. how countries trade with each other. d. how finances are determined.
An economic model is
a. a plastic scaled version of the economy b. a complete depiction of reality c. an abstraction of reality d. applicable to consumer behavior but not to producer behavior e. not an accepted tool of the economics profession