Draw the supply curve for a good whose price elasticity of supply is equal to zero. Be sure to label both axes.
What will be an ideal response?
The supply curve in the graph is a vertical line, indicating that the quantity of the good supplied will not change no matter what happens to its price. In terms of the calculation of the price elasticity of supply, the change in quantity is zero and so therefore is the calculated value of the price elasticity.
You might also like to view...
If Ringo is risk averse, at a wealth of $200,000 his utility of wealth curve has a ________ slope and his marginal utility of wealth is ________ than at a wealth of $100,000
A) negative; smaller B) negative; larger C) positive; smaller D) positive; larger
What might the World Bank actually be a less efficient means of financial intermediatinon than private international banks?
What will be an ideal response?
Free competitive markets do not process information effectively
Indicate whether the statement is true or false
Over half of U.S. consumer expenditures are for what?
A. Nondurable goods. B. Durable goods. C. Housing. D. Services.