If Sellers Do NOT Respond at All to a Change

question 42

Multiple Choice

If sellers do NOT respond at all to a change in price:

• A)supply must be perfectly inelastic
• B)supply must be perfectly elastic
• C)a long period of time must have elapsed
• D)the rate of technological advancement must be great

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Definitions:

Bankruptcy Costs

Expenses associated with the process of declaring bankruptcy, including legal fees, filing fees, and other related costs.

Administrative Expenses

Costs related to the general operations of a business that are not directly tied to a specific project or product.

Tax-Related Gains

Profits derived from tax strategies, deductions, or credits that reduce the overall tax liability.