A supply curve that is parallel to the price axis is

A. unitary elastic.
B. perfectly elastic.
C. perfectly inelastic.
D. relatively inelastic.

Answer: C

Economics

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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________

A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases

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Car A gets 12 miles per gallon. Car B gets 30 miles per gallon. Which is the most economically efficient car?

A) Car A B) Car B C) They are equal in their economic efficiency. D) It is impossible to determine without more information.

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