If Firms Do Not Increase Their Quantity Supplied When Price

question 201

Multiple Choice

If firms do not increase their quantity supplied when price changes, then supply is

• A)perfectly elastic.
• B)perfectly inelastic.
• C)relatively inelastic.
• D)elastic.

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Definitions:

Texting

The act of sending and receiving written messages through electronic devices, primarily mobile phones.

Adverse Selection

A situation in markets where buyers or sellers have information that the other party does not, leading to suboptimal market outcomes.

Mortgage Lender

A financial institution or individual that provides funds to borrowers for the purpose of purchasing real estate, which is secured by the property being bought.

Default

Failure to fulfill a financial obligation, such as not making scheduled loan payments, leading to potential legal consequences or credit score impact.