The Elasticity of the Momentary Supply Curve for Any Good

question 415

Multiple Choice

The elasticity of the momentary supply curve for any good always equals

• A) zero.
• B) one.
• C) positive infinity.
• D) None of the above answers is correct.

---

Definitions:

Perfect Price Discrimination

A situation where a seller charges the maximum possible price for each unit consumed that each consumer is willing to pay, thus capturing the entire consumer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Market Price

The current price at which an asset or service can be bought or sold.

Monopolistic Competitor

A firm operating in a monopolistic competition market, selling a product that is differentiated from those of competitors.