If the price elasticity of supply is equal to zero and the price was to rise, the quantity supplied would:
A. decrease slightly.
B. fall to zero.
C. not change.
D. increase.
Answer: C
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The labor demand curve is downward sloping because as the real wage ________ the amount of labor hired ________
A) falls; decreases B) falls; increases C) rises; remains constant D) rises; increases
For many years after the Great Depression, economists believed a central bank policy of increasing bank reserves in response to a recession would be
A) largely ineffective. B) the opposite of what the circumstances required. C) useless unless it also raised interest rates. D) useless unless it was accompanied by declining prices.
An increase in the inflation rate increases employment only if the increase in inflation is unexpected
Indicate whether the statement is true or false
You are having a party and one of your guests lights up a cigar without asking. Explain why this creates an externality
What will be an ideal response?