The Supply of a Product Will Be More Elastic If

question 169

Multiple Choice

The supply of a product will be more elastic if _____

• A)the good has few substitutes.
• B)the time the producer has to adjust to a price change is long.
• C)the time frame for adjusting to price changes is short.
• D)demand is elastic.
• E)demand is inelastic.

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Definitions:

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold.

Balance Of Trade

The difference between the value of a country's exports and the value of its imports. A positive balance indicates a surplus, while a negative balance indicates a deficit.

Freely Floating Exchange Rate

A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more foreign currency than it is earning.