Inputs Whose Quantity of Supply Is Fixed and Whose Demand

question 54

True/False

Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply.

---

Definitions:

Market Values

The existing rate at which an asset or service is being offered for buying or selling.

Taxable Merger

A merger in which the assets acquired are treated as sales, generating a tax liability for the selling company.

Nontaxable Bids

Offers made for financial securities that are exempt from taxes.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net tangible assets.