If the Quantity Supplied of a Good Is Fixed at 100

question 96

Multiple Choice

If the quantity supplied of a good is fixed at 100 units at all price levels, then its price elasticity of supply is

• A)perfectly elastic.
• B)unit elastic.
• C)perfectly inelastic.
• D)zero.
• E)undefined.

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Definitions:

Intermediate Goods

Goods that are used as inputs in the production of final goods, not intended for final consumption.

Inventory

The total amount of goods and materials a business holds for the ultimate goal of resale or production.

GDP

Gross Domestic Product, a measure of the economic output of a country, considered by calculating the total value of all final goods and services produced within that country over a specified period.

Disposable Personal Income

The total income households have after taxes and other deductions, available for spending, saving, or investment.