A Horizontal Supply Curve

question 146

Multiple Choice

A horizontal supply curve

• A)is impossible except in the long run.
• B)implies an elasticity of supply equal to zero.
• C)implies an elasticity of supply equal to infinity.
• D)indicates that suppliers are unwilling to produce the good.
• E)indicates there is a fixed quantity of the good that can be supplied.

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Definitions:

Transactions

The financial events that affect the financial statements of a business, involving transfers or exchanges of value between two parties.

Current Ratio

An indicator of a business's capacity to meet its obligations due in the next twelve months.

Calculated

Determined by mathematical methods; involving the process of using mathematical or logical techniques to derive a result.

Measure

A method or tool used to quantify or evaluate a variable or quantity.