Supply Is Elastic If the Quantity Supplied Responds Substantially to a Change

question 102

True/False

Supply is elastic if the quantity supplied responds substantially to a change in price, and supply is inelastic if the quantity supplied responds only slightly to a change in price.

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Definitions:

Institutional Constraint

Restrictions and limits imposed by laws, regulations, and social norms that affect the decisions and actions of individuals and organizations.

Production Possibilities

define the alternative combinations of different goods or services that can be produced in a society with all its resources fully and efficiently utilized.

Cold War

The period of geopolitical tension between the Soviet Union and the United States, including their allies, from the end of World War II until the dissolution of the Soviet Union in 1991.

Productive Efficiency

A situation where the economy or a production system can no longer produce additional amounts of a good without lowering the production level of another product.