Inputs Whose Quantity of Supply Is Fixed and Whose Demand

question 54

True/False

Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply.

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specified period.

Entrusts

To give someone the responsibility to take care of something or act on one's behalf.

Merchant

An individual or business entity engaged in the trade of goods, services, or both to consumers, primarily for earning a profit.

Original Owner

Refers to the first owner or possessor of an item or property after it was created or came into being.