The Supply of a Good Is Said to Be _____

question 9

Multiple Choice

The supply of a good is said to be _____ when a small percentage increase in the price of the good leads to a proportionally larger change in the quantity supplied.

• A)inelastic
• B)elastic
• C)unit elastic
• D)perfectly inelastic
• E)perfectly elastic

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Definitions:

Endowment

The total resources available to an individual or entity, including assets, income, and wealth.

Competitive Equilibrium

Competitive equilibrium is a market condition where supply equals demand, with no incentive for price or quantity adjustments.

Pure Exchange

An economic model that assumes no production and focuses solely on the redistribution of existing goods and services among individuals based on preferences and initial endowments.

Partial Equilibrium Analysis

An economic analysis that considers the equilibrium in a single market or industry without taking into account the effects from other markets or industries.