Which of the Following Statements Is Valid When Supply Is

question 32

Multiple Choice

Which of the following statements is valid when supply is perfectly elastic at a price of $4?

• A)The elasticity of supply approaches infinity.
• B)The supply curve is vertical.
• C)At a price below $4,quantity supplied is infinite.
• D)At a price above $4,quantity supplied is zero.

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Definitions:

Cash-Out Combinations

Business transactions where shareholders of a company being acquired or merged are paid in cash instead of receiving shares of the acquiring or merging entity.

Minority Shareholders

Shareholders who own a smaller portion of a company's shares and typically do not have controlling interests or significant influence on business decisions.

Oppressive Acts

Behaviors or actions by directors or majority shareholders in a corporation that are burdensome, harsh, or wrongful against minority shareholders.

Directors

Members of a company's board of directors, who are elected to oversee and guide the management and policies of the corporation, representing the interests of the shareholders.