Supply Is Very Elastic When

question 99

Multiple Choice

Supply is very elastic when

• A)The quantity supplied does not change much when price rises.
• B)The quantity supplied has a large increase in response to an increase in price.
• C)The quantity supply does not respond to an increase in price.
• D)The quantity demanded causes the quantity supplied to increase.

Understand the role of domestication of judgments and its impact.

Comprehend the conditions and processes involved in borrowing and repaying educational loans.

Know the potential consequences and recovery actions for defaulting on U.S. Department of Education loans.

Recognize the specific conditions under which educational loans may be canceled or discharged.

---

Definitions:

Rival

A good whose consumption by one person diminishes the quantity or quality available for consumption by others.

Price Leadership

An informal method that firms in an oligopoly may employ to set the price of their product: One firm (the leader) is the first to announce a change in price, and the other firms (the followers) soon announce identical or similar changes.

Oligopoly

An oligopoly is a market structure characterized by a small number of firms dominating the market, where each firm has significant control over prices and other market factors.

Collusion

A non-competitive, secret, and often illegal agreement between rivals aiming to disrupt the market's equilibrium by controlling the market price, production, or marketing of goods and services.