If the Supply Curve for a Product Is Vertical, Then

question 105

Multiple Choice

If the supply curve for a product is vertical, then the elasticity of supply is:

• A)​equal to zero.
• B)​equal to one.
• C)​greater than one but less than infinity.
• D)​equal to infinity.

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Definitions:

New Markets

Refers to the process or strategy of identifying and entering areas or sectors where a business can sell its products or services that were previously unexplored or untapped.

Unrelated Diversification

A business strategy where a company expands into markets or products that are not related to its current operations.

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction.

Economic Fluctuations

Variations in the level of economic activity over a period of time, often characterized by periods of growth (expansions) and contraction (recessions).