Refer to the Graph Above.Which Statement Is Correct

question 48

Multiple Choice

Refer to the graph above.Which statement is correct?

• A) The demand curve is perfectly elastic.
• B) The demand curve is perfectly inelastic.
• C) The supply curve is perfectly elastic.
• D) The supply curve is perfectly inelastic.

---

Definitions:

Opportunity Cost

The abandonment of potential improvements from other possibilities once one choice is made.

Absolute Advantage

A country's ability to produce a good more efficiently than other countries, requiring fewer resources for the same output.

Autarky

National self-sufficiency; no economic interaction with foreigners.

Opportunity Cost

The value of the best alternative that is forgone in making any choice or decision.