If sellers do not adjust their quantities supplied at all in response to a change in price,
a. advances in technology must be prevalent.
b. the time period under consideration must be very long.
c. supply is perfectly elastic.
d. supply is perfectly inelastic.
d
You might also like to view...
From 1900 to 2013 real GDP per person in the U.S. has ________
A) doubled B) grown by a factor of four C) grown by a factor of nine D) grown by a factor of twenty E) declined
In the above figure, if the firm is facing demand curve d2, then to maximize profits it will produce at output level
A) A. B) B. C) C. D) D.
Graphically, producer surplus is measured as the area:
A. under the demand curve and below the actual price. B. under the demand curve and above the actual price. C. above the supply curve and above the actual price. D. above the supply curve and below the actual price.
In general, an increase in the price of a good:
A. will cause both an income and substitution effect. B. usually will have no effect. C. will cause the income effect to be bigger than the substitution effect. D. will cause the substitution effect to be bigger than the income effect.