A Supply Curve That Is a Vertical Straight Line Indicates

question 244

Multiple Choice

A supply curve that is a vertical straight line indicates that

• A)production costs for this product cannot be calculated.
• B)the relationship between price and quantity supplied is inverse.
• C)a change in price will have no effect on the quantity supplied.
• D)an unlimited amount of the product will be supplied at a constant price.

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Definitions:

Convertible

Refers to financial instruments or securities, like bonds or preferred stock, that can be transformed into another form, usually common stock, under certain conditions.

Dilutive Security

A financial instrument, like an option or convertible bond, that may reduce earnings per share by increasing the total number of shares outstanding.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.

Bonds Payable

Bonds payable are long-term liabilities representing money a company must pay back to bondholders, typically at specified interest rates and dates.