If the Supply of a Factor Is Perfectly Inelastic,then

question 45

Multiple Choice

If the supply of a factor is perfectly inelastic,then

• A) no more than the existing quantity can be supplied.
• B) the supply curve is horizontal.
• C) sellers will provide whatever quantity is demanded at the going price.
• D) a rise in price results in no quantity being supplied.
• E) a fall in price results in no quantity being supplied.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for managing the nation's monetary policy and regulating its financial institutions.

Open Market Operations

Activities undertaken by a central bank, such as the buying or selling of government securities, to control the money supply and interest rates.

Discount Rate

The interest rate charged by the Federal Reserve to depository institutions.

Federal Reserve

The Federal Reserve is the central bank of the United States, responsible for implementing the country's monetary policy, regulating banks, maintaining financial system stability, and providing financial services.