If the supply curve for a product is horizontal, then the elasticity of supply is:
a. equal to zero
b. equal to one.
c. greater than one but less than infinity.
d. equal to infinity.
d
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Based on the figure above, the price of a can is $8; if the price increased to $12, then the firm would
A) produce zero cans. B) decrease the amount of cans produces it but not to zero. C) not change the amount of cans it produces. D) increase the amount of cans it produces. E) More information is needed to determine what action the firm will take.
If net interest and net transfers are $0, and a nation's purchases of foreign goods and services are $3.5 billion while its sales of goods and services to foreigners are $4.5 billion
A) it has a $1 billion surplus in its balance of payments. B) it has a $1 billion deficit in its current account. C) it has a $1 billion surplus in its current account. D) its capital and financial account shows a surplus.
The median-voter theorem explains why
a. politicians take extreme stands on issues. b. voters are attracted to political outsiders. c. two opposing politicians tend to take opposite sides of each issues. d. politicians tend to take middle-of-the-road positions.
In the long run, increases in output per person arise primarily from:
A. increases in female labor force participation. B. increases in average labor productivity. C. an increasing proportion of the population retiring D. increases in male labor force participation.