If the quantity supplied is infinitely responsive to any change in price, the supply curve has a price elasticity of supply equal to infinity.
Answer the following statement true (T) or false (F)
True
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Travis always carries $100 in his wallet to pay for groceries. This is an example of the
A) precautionary demand for money. B) asset demand for money. C) transactions demand for money. D) wealth demand for money.
Shaniq consumes only magazine and CDs. Her income equals $60 per month. CDs are $12 each and magazines are $5 each. What is the equation for her budget line?
A) $60 = Qm + QCD B) $60 = $12Qm + $5QCD C) 12 = -2Qm + 6 D) $60 = 12QCD + 5Qm
In managerial economics, agency costs refer to
a. booking travel arrangements b. model and actor representation c. imperfections in dealing with those hired d. foreign espionage
On a consumer surplus graph, consumer surplus is represented by ______.
a. the area above the market demand curve and below the market price b. a sharp downward slope of the demand curve c. the area below the market demand curve and above the market price d. the point where the supply and demand curves intersect