As Price Elasticity of Supply Increases,the Supply Curve

question 47

Multiple Choice

As price elasticity of supply increases,the supply curve

• A)becomes flatter.
• B)becomes steeper.
• C)becomes downward sloping.
• D)shifts to the right.

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Definitions:

Profit-maximizing Level

The output level at which a firm achieves the highest possible profit.

Short-run

In economics, a period wherein at least one input (like capital) is fixed, and firms can only adjust variable inputs (like labor).

Normal Profits

The level of profit necessary to keep a firm in a specific industry or market in the long run, equating to the firm’s opportunity costs.

Profit-maximizing

A business strategy or operational mode where the primary goal is to achieve the maximum possible profits.