The Price Elasticity of Supply Will Tend to Be Inelastic

question 91

Multiple Choice

The price elasticity of supply will tend to be inelastic in the short run when:

• A) inputs are readily available
• B) the industry does not have to pay overtime if additional working hours are required
• C) firms have spare capacity
• D) inputs are not readily available

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Definitions:

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights to it free from many defenses.

Restrictive Indorsement

A signature on a negotiable instrument, such as a check, that limits how the instrument can be used.

Depositary Banks

Banks that hold securities (such as shares or bonds) in custody for other parties, facilitating securities trades and dividend payments.

State of Qatar

A sovereign country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula.