If the quantity supplied is infinitely responsive to any change in price, the supply curve is:
A. upward sloping.
B. downward sloping.
C. horizontal.
D. vertical.
Answer: C
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If the long-run supply curve in a perfectly competitive industry is upward sloping, this is because
A) firms are different. B) firms are identical. C) input prices rise as the industry expands. D) Either A or C.
The minimum wage can be thought of as a price floor. The great majority of labor economists believe that a minimum wage __________ unemployment among young and unskilled workers
a. increases b. decreases c. eliminates d. has no effect on e. There is not enough information to answer the question.
If marginal costs are falling and below average costs, then average costs must be falling too
Indicate whether the statement is true or false
The immediate determinants of investment spending are the:
A. expected rate of return on capital goods and the real interest rate. B. level of saving and the real interest rate. C. marginal propensity to consume and the real interest rate. D. interest rate and the expected price level.