If the Quantity Supplied Responds Substantially to a Relatively Small

question 127

Multiple Choice

If the quantity supplied responds substantially to a relatively small change in price, supply would be:

• A) price elastic.
• B) price inelastic.
• C) negatively sloped.
• D) insensitive to changes in price.

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Definitions:

Absolute Advantage

The capacity of an entity to generate a higher volume of a certain good, product, or service compared to its rivals, while employing the same quantity of resources.

Italy

A country located in southern Europe, known for its rich history, culture, and significant contributions to art, food, and fashion.

Tariff

A tax imposed by a government on goods and services imported from another country.

Revenues

The gross income a business earns from its fundamental activities, specifically through selling goods or offering services.