A Supply Curve That Is Vertical

question 170

Multiple Choice

A supply curve that is vertical

• A)is perfectly elastic.
• B)is perfectly inelastic.
• C)is impossible.
• D)has an elasticity equal to 1.

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Definitions:

Opportunity Costs

The cost of foregone alternatives, or what is given up to engage in one activity instead of another.

Efficiency

The extent to which resources are used optimally to achieve a specific outcome with minimal waste.

Incentives

Factors, usually financial or material rewards, that motivate individuals or firms to act in a certain way.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of oil-producing countries that coordinates and unifies the petroleum policies of its member states.