If Firms Do Not Increase Their Quantity Supplied When Price

question 61

Multiple Choice

If firms do not increase their quantity supplied when price changes, then supply is

• A)perfectly elastic.
• B)perfectly inelastic.
• C)inelastic.
• D)elastic.

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Definitions:

Inventory Sale

A transaction involving the sale of products that a company has in stock, typically aimed at reducing excess inventory.

Raw Materials

Basic materials or substances used in the primary production or manufacturing of goods.

Competitors

Other businesses or individuals that offer similar products or services within the same market, often competing for the same customer base.

Bankruptcy Situation

A legal status of a person or entity that cannot repay debts to creditors and seeks relief through court intervention.