If supply is highly elastic and demand shifts to the left:
A. price and quantity will hardly change at all.
B. price will fall significantly; quantity hardly changes at all.
C. price will hardly change at all; quantity will fall significantly.
D. price will fall significantly as will quantity.
Answer: C
You might also like to view...
Protectionism
How do firms respond to unplanned inventory changes? What is the effect on their production and GDP?
What will be an ideal response?
The supply curve of a perfectly competitive firm in the short run is
A) the portion of the firm's marginal cost curve above the minimum point of the average total cost curve. B) the firm's average variable cost curve. C) the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve. D) the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.
An increase in the demand for dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.