If Sellers Do Not Respond at All to a Change

question 60

Multiple Choice

If sellers do not respond at all to a change in price,what do we know

• A)Technological advancement must be small.
• B)Supply must be perfectly elastic.
• C)A short period of time must have elapsed.
• D)Supply must be perfectly inelastic.

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Definitions:

Tariffs

Taxes imposed by a government on imported goods or services to protect domestic industries or to generate revenue.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Protectionist

Referring to government policies or doctrines that protect domestic industries from foreign competition, often through tariffs and quotas.

Absolute Advantage

The ability of a country, region, or entity to produce a good or service more efficiently than its competitors, using fewer resources.