A Sudden,end-Of-Summer Heat Wave Increases the Demand for Air Conditioners

question 66

Multiple Choice

A sudden,end-of-summer heat wave increases the demand for air conditioners and catches suppliers with no reserve inventories.The momentary supply for air conditioners is

• A)perfectly elastic.
• B)perfectly inelastic.
• C)elastic.
• D)shown by an upward-sloping curve.
• E)shown by a horizontal curve.

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Definitions:

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Previous Debt

An obligation or a financial liability that was incurred before the current period or transaction being considered.

Illusory Promise

A statement that appears to assure a commitment but lacks the essential elements to bind the promisor legally.

Option to Cancel

A clause in a contract that allows one or more parties to terminate the agreement under certain conditions.