If the Quantity of a Good Supplied Is Not Very

question 29

Multiple Choice

If the quantity of a good supplied is not very sensitive to the price of the good, economists say the supply of the good is relatively

• A) inelastic.
• B) elastic.
• C) robust.
• D) inverse.

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Definitions:

Total Revenues

The sum of all earnings or income generated by a business or entity from its operations, before any deductions or expenses are taken into account.

Forgone Entrepreneurial Income

The potential earnings that an entrepreneur sacrifices by choosing to operate their business instead of working elsewhere for a salary.

Production Costs

Expenses incurred in the manufacturing or production process, including raw materials, labor, and overhead costs.

Average Product

The output produced per unit of input, calculated by dividing total output by the total number of units of the input used.