A Value of Zero for the Elasticity of Supply of Some

question 126

Multiple Choice

A value of zero for the elasticity of supply of some product implies that

• A)the supply curve is horizontal.
• B)supply is highly responsive to price.
• C)the supply curve is vertical.
• D)the product will not be supplied at any price.
• E)there is no supply.

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Definitions:

Bond

A fixed-income investment in which an investor loans money to an entity (typically corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Premium

In finance, this term refers to the amount by which the price of a bond or stock exceeds its principal or face value, or to an additional payment above the normal cost.

Time

A continuous sequence of events that occurs in an irreversible succession from the past, through the present, to the future.