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.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for slight differentiation and some price control.

Product Differentiation

The method of differentiating a product or service from its competitors in the marketplace to increase its appeal to a specific target audience.

Monopolistic Competitor

A firm operating in a monopolistic competition market, offering a unique product but competing with several other firms in terms of price, quality, and branding.

Elastic Demand Curve

A representation of the demand for goods or services that are very sensitive to changes in price, indicating that a small change in price leads to a large change in quantity demanded.