If the Elasticity of Supply of a Good Is Zero

question 158

Multiple Choice

If the elasticity of supply of a good is zero, then its

• A) supply curve is vertical.
• B) supply curve is horizontal.
• C) demand curve must be vertical.
• D) supply curve is positively sloped.

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Definitions:

Amihud and Mendelson

Researchers known for their work in finance, particularly on the effects of market liquidity on asset prices and the bid-ask spread.

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Investment Newsletter

A publication that provides advice and analysis on investment opportunities, market trends, and financial strategies.

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A period of time consisting of sequential years immediately following one another without interruption.