Use the Following to Answer Questions

question 343

Multiple Choice

Use the following to answer questions:
Figure: Short-Run Costs
-(Figure: Short-Run Costs) Look at the figure Short-Run Costs. This firm's short-run supply curve begins at quantity:

• A) Q.
• B) R.
• C) S.
• D) T.

---

Definitions:

Perfectly Elastic Demand

A market situation in which demand for a product is infinitely sensitive to changes in price.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price alterations.

Elasticity Value

A measure in economics indicating how the quantity demanded or supplied of a good responds to changes in price or income.

Inelastic Demand

A situation in which the quantity demanded of a good or service changes by a relatively small amount in response to a change in its price.