If the Supply of a Factor Is Perfectly Inelastic, Then

question 23

Multiple Choice

If the supply of a factor is perfectly inelastic, then

• A) the supply curve is horizontal.
• B) a fall in price results in no quantity being supplied.
• C) sellers will provide whatever quantity is demanded at the going price.
• D) no more than the existing quantity can be supplied.

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Definitions:

Order Processing

Form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.

Creative Selling

Persuasive type of promotional presentation.

Marketing Intermediaries

Businesses or individuals that act as a middleman in the distribution channel, moving products from the producer to the consumer.

Special Discounts

Price reductions offered to customers under specific conditions or during certain times.