When a Supply Curve Is Relatively Flat

question 218

Multiple Choice

When a supply curve is relatively flat,

• A) sellers are not at all responsive to a change in price.
• B) the equilibrium price changes substantially when the demand for the good changes.
• C) the supply is relatively elastic.
• D) the supply is relatively inelastic.

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Definitions:

Colloid

A mixture wherein fine particles are dispersed throughout another substance without dissolving, such as in gels or emulsions.

Suspension

Liquid through which a solid is dispersed and from which the solid separates unless the liquid is kept in motion.

Equilibrium

A state of balance between opposing forces or actions.

Steady State

A condition where all aspects of a system are in balance and unchanging over time, often used in physics, chemistry, and physiology.