If a supply curve is horizontal, then supply is said to be perfectly elastic, and the price elasticity of supply approaches infinity
a. True
b. False
Indicate whether the statement is true or false
True
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If the government institutes a specific tax for a good
A) the producer simply passes the entire tax on to the consumer. B) the producer must absorb the entire tax. C) the producer can generally only pass part of the tax onto the consumer. D) the equilibrium price drops.
A profit-maximizing monopsonist will hire workers at the point where the marginal factor cost curve intersects the
A. Marginal wage curve. B. Marginal revenue product curve. C. Labor supply curve. D. Equilibrium wage.
Which of the following actions did Congress take in the 1930s, in an effort to prevent future financial crises like the stock market crash of 1929?
A. Formation of the FDIC B. Formation of the Federal Reserve Bank C. American Anti-Corruption Act D. Bubble Act
In the intermediate range the aggregate supply curve is
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.