For a Product with a Constant or Gently Increasing Opportunity

question 342

Multiple Choice

For a product with a constant or gently increasing opportunity cost of producing additional units,as more is produced,we expect that

• A) demand is price elastic.
• B) supply is price elastic.
• C) demand is price inelastic.
• D) supply is price inelastic.
• E) demand is unit elastic.

---

Definitions:

Domestic Industries

Industries that focus on producing goods and services within a country's borders.

Production Possibility Frontier

a curve depicting all maximum output possibilities for two goods, given a set of inputs when all resources are fully employed.

Efficient Production

A process that maximizes output with the minimum amount of input, using resources in the most effective manner to achieve the highest level of productivity.

Tariff Revenue

Income generated by a government from imposing import taxes on goods brought into the country.