Decreases in Input Costs and a Longer Time Since a Price

question 61

Multiple Choice

Decreases in input costs and a longer time since a price change will tend to:

• A)increase the price elasticity of supply.
• B)decrease price elasticity of supply.
• C)have no impact on the price elasticity of supply.
• D)increase price elasticity of supply with decreases in input costs but decrease price elasticity of supply with length of time.

---

Definitions:

Illegal Agreements

Contracts or arrangements that are prohibited by law due to their nature, purpose, or the means by which they are achieved.

Unconscionable Agreements

Contracts or agreements that are so unfairly one-sided that they are considered void under the law due to the significant imbalance in power and information between the parties involved.

Contracts of Adhesion

Contracts of adhesion refer to standard-form agreements prepared by one party, leaving the other party little or no ability to negotiate more favorable terms.

Public Policy

Principles and standards considered by the government to be beneficial for the community and used to guide legislative or regulatory actions.