A Supply Curve That Is Parallel to the Horizontal Axis

question 37

Multiple Choice

A supply curve that is parallel to the horizontal axis suggests that:

• A)when quantity supplied increases, price rises
• B)the relationship between price and quantity supplied is inverse
• C)a change in demand will change price in the same direction
• D)the relevant time period is the immediate run
• E)in the long run, additional units of output will be forthcoming without an increase in price, in a constant cost industry

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Definitions:

Planned Change

An intentional, organized effort to alter processes, systems, or structures within an organization, often involving a structured methodology to manage the transition from a current state to a desired future state.

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.

Structural Redesign

The process of changing an organization’s structure to improve efficiency, productivity, and adaptability to new challenges.