When a Supply Curve Is Relatively Flat,the

question 45

Multiple Choice

When a supply curve is relatively flat,the

• A)sellers are not at all responsive to a change in price.
• B)equilibrium price changes substantially when the demand for the good changes.
• C)supply is relatively elastic.
• D)supply is relatively inelastic.

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Definitions:

Loanable Funds

Funds available for borrowing, which come from savings deposited in banks or from other sources of capital.

Government Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific period, often leading to borrowing.

Government Budget Surplus

A financial situation in which a government's revenues exceed its expenditures during a specific period of time.

Real Interest Rates

Interest rates adjusted for inflation, showing the real cost of borrowing or the real yield on savings.