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:

Independent Variable

A variable in an experiment or study that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

The variable in an experiment or study that is assumed to depend on or be caused by another variable (the independent variable).

Coefficient Of Determination

A statistical measure in regression analysis that quantifies the proportion of the variance in the dependent variable predictable from the independent variable(s).