Graph 5-5 -In Graph 5-5, Which Supply Curve Is Perfectly Inelastic

question 155

Multiple Choice

Graph 5-5

-In Graph 5-5, which supply curve is perfectly inelastic?

• A) S₁
• B) S₂
• C) S₃
• D) it is impossible to tell without more information

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Definitions:

Tariff

A tax imposed on imported goods, usually to protect domestic businesses and market from foreign competition.

Liberalization

The process of reducing government regulations and restrictions in an economy to encourage more business activities and investments.

GATT

General Agreement on Tariffs and Trade, a legal agreement minimizing barriers to international trade.

Tariff

A tax imposed on imported goods and services, typically to restrict trade, increase government revenue, or protect domestic industries.