If Sellers Do Not Adjust Their Quantities Supplied at All

question 42

Multiple Choice

If sellers do not adjust their quantities supplied at all in response to a change in price,

• A)advances in technology must be prevalent.
• B)the time period under consideration must be very long.
• C)supply is perfectly elastic.
• D)supply is perfectly inelastic.

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Definitions:

Variable Cost

Outlays that are tied to the level of output or sales, including expenditures on materials and labor.

Cotton

A natural fiber harvested from the cotton plant, widely used in the textile industry for fabric production.

Polyester Cloth

A type of fabric made from polyester fibers, known for its durability, resistance to stretching and shrinking, and quick drying properties.

Direct Materials

Raw materials that can be directly identified and allocated to the production of specific goods or services.