When supply curve is horizontal that means for a fixed price the firm could supply any amount of product and for a small change in price could change the whole supply schedule. So the supply curve is perfectly elastic.
Answer: supply is perfectly elastic
If the supply curve in a market is horizontal, then A. supply is inelastic. B. a...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
When large changes in price lead to no changes in quantity demanded, demand is perfectlyGroup of answer choicesinelastic, and the demand curve will be vertical.inelastic, and the demand curve will be horizontal.elastic, and the demand curve will be vertical.elastic, and the demand curve will be horizontal.
In the Challenge Solution, the introduction of GM seeds shifts the market supply curve to the right and the market demand curve to the left. In turn, we could predict the change in the equilibrium price of crops but not the equilibrium quantity. Are there any conditions on the shapes of the supply and demand curves (or their elasticities) such that we could predict the effect on equilibrium quantity. Assume the introduction of GM seeds shifts market supply to the...
1. A perfectly inelastic demand curve is (Click to select) A. downward-sloping B horizontal C vertical D upward-sloping . Price elasticity of demand is equal to (Click to select) A. -∞ B 0 C -1 2. A perfectly elastic demand curve is (Click to select) A. downward-sloping B horizontal C vertical D upward-sloping . Price elasticity of demand is equal to (Click to select) A. -∞ B 0 C -1 3. Along a linear demand curve that is neither perfectly inelastic nor perfectly elastic, price elasticity...
A perfectly inelastic supply curve is a: Group of answer choices vertical line indicating that a very large increase in price will increase the quantity supplied. vertical line indicating that even a very large increase in price won't increase the quantity supplied. horizontal line indicating that a very small increase in price will increase the quantity supplied. horizontal line indicating that even a very small increase in price won't increase the quantity supplied.
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
MC Qu. 50 Suppose you observe that minor changes... Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that Multiple Choice O demand is inelastic. O demand is perfectly inelastic O demand is elastic O demand is unit elastic. MC Qu. 145 The cross price elasticity of demand... The cross price elasticity of demand is (mathematically) the Multiple Choice 0 percentage change in...
If the price elasticity of supply is 5, supply is said to beThe choices for the first one is: Perfectly elastic, elastic, unit elastic, inelastic, perfectly inelastic. Same with the last choices. If the price elasticity of supply is 5, supply is said to be perfectly elastic This means that a 1% increase in the price of the product will lead to a % change in the quantity supplied. Supply is Cresponsiveto price changes. If a 1% change in price...
we learned that the long-run supply curve is perfectly elastic, or horizontal. We also learned, however, that in the short run, when the demand for a product increases, individual firms increase their production (or, quantity supplied) in response to a higher market price. What occurs in the transition from theso-called "short run" to the "long run" that leads the long-run supply curve to be perfectly elastic?
the demand curve facing the monopoly is A) perfectly elastic B) perfectly inelastic C) the market demand curve for the product D) Upward slopping