The Price Elasticity of Today's Supply Curve of Classrooms on Campus

question 216

Multiple Choice

The price elasticity of today's supply curve of classrooms on campus is likely to

• A)be greater than 1
• B)be less than 1
• C)be equal to 1
• D)approach zero
• E)be infinity

---

Definitions:

Monopoly Sellers

Single sellers in a market with no close substitutes for the product or service they offer, giving them significant control over prices.

Allocative Inefficiency

A situation where resources are not optimally allocated according to consumer preferences, often leading to overproduction or underproduction of certain goods or services.

Monopolist

An entity that has exclusive control over the supply of a particular good or service, setting prices without facing competition.

Opportunity Cost

The cost of what you have to give up in order to choose something else.