If the supply of a factor is perfectly inelastic, then
A) no more than the existing quantity can be supplied.
B) the supply curve is horizontal.
C) sellers will provide whatever quantity is demanded at the going price.
D) a fall in price results in no quantity being supplied.
A
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If the MPC is 0.75, the multiplier is equal to
A) 5. B) 0.75/0.25 = 3. C) 0.25. D) 4.
What is the cost-minimizing equilibrium condition?
What will be an ideal response?
About what percentage of the U.S. labor force works under union wage contracts?
A) 50 percent B) 35 percent C) 25 percent D) 10 percent
Which of the following is true in the short run? a. The aggregate supply curve is horizontal
b. The aggregate supply curve is vertical. c. Per-unit costs do not increase as much as output prices when the price level rises. d. An increase in price per unit results in a decrease in profit per unit. e. Firms' total costs of production decrease as output expands beyond the potential level.