If the Price Elasticity of Supply Is Equal to Infinity

question 61

Multiple Choice

If the price elasticity of supply is equal to infinity and the price was to fall, the quantity supplied would

• A) decrease slightly.
• B) fall to zero.
• C) not change.
• D) increase.

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Definitions:

Variable Pay

Compensation that is dependent on performance or results achieved, as opposed to fixed salaries, incentivizing employees to achieve organizational goals.

Outsourcing Compensation

The practice of hiring external entities to manage compensation and benefits planning, often to optimize costs.

Outsourcing Policy

A strategic decision by a company to use external resources to perform tasks, handle operations or provide services that are either difficult to manage or outside of the company's core competencies.

Administration

The process or activity of running a business or organization, including management of operations, finances, and personnel.