A Perfectly Elastic Supply Curve

question 154

Multiple Choice

A perfectly elastic supply curve

• A) is vertical.
• B) is horizontal.
• C) is downward sloping.
• D) is backward bending.
• E) has an infinite slope.

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Definitions:

Industrial Output

The total value of the goods and services produced by a country's industrial sector.

Insufficient Capital

Insufficient Capital refers to a situation where an individual or entity lacks the necessary financial resources or funding to support its operations, investments, or growth plans.

Economic Growth

An increase in the total output of an economy. Growth occurs when a society acquires new resources or when it learns to produce more using existing resources.

Free Trade

The unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas.