If the Long-Run Supply of Rice Is Perfectly Elastic, Then

question 358

Multiple Choice

If the long-run supply of rice is perfectly elastic, then

• A) as people's incomes rise, the quantity of rice supplied decreases.
• B) as the price of corn falls, the quantity of rice demanded decreases.
• C) in the long run, a large rise in the price of rice causes no change in the quantity of rice supplied.
• D) in the long run, an increase in the demand for rice leaves the price of rice unchanged.

---

Definitions:

Profit Center

A branch or division of a company that is accounted for on a standalone basis for profit calculation.

Cost Center

A segment of a company that does not directly generate revenue but incurs costs, focusing on controlling expenses and efficiency.

Generate Revenue

The process of earning money from business activities, including sales of goods or services.

Gross Profit

The financial metric resulting from subtracting the cost of goods sold from sales revenue, indicating the efficiency of a company in managing its production and sales.