A Horizontal Supply Curve

question 146

Multiple Choice

A horizontal supply curve

• A)is impossible except in the long run.
• B)implies an elasticity of supply equal to zero.
• C)implies an elasticity of supply equal to infinity.
• D)indicates that suppliers are unwilling to produce the good.
• E)indicates there is a fixed quantity of the good that can be supplied.

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Definitions:

Capitalist Economy

An economic system where private individuals or businesses own capital goods, and the production of goods and services is based on supply and demand.

Employment Discrimination

Occurs when a job applicant or employee is treated unfavorably because of characteristics, such as race, gender, age, or disability, that are unrelated to their job performance.

Earnings

The amount of profit that a company produces during a specific period, which is a key indicator of its financial health.

Short-Run Cost Curves

Graphical representations showing how a firm's costs change in relation to output level in the short term, where some inputs are fixed.