If the supply curve for a product is horizontal, then the elasticity of supply is:
a. equal to zero
b. equal to one.
c. greater than one but less than infinity.
d. equal to infinity.
d
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Firms face downward sloping demand curves in
A) monopolies only. B) monopolies and oligopolies only. C) monopolies and oligopolies that collude only. D) all market structures except perfect competition.
At a ball game we can observe people eating hot dogs, french fries, and hamburgers. If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger, we can conclude that
A. at this time Michelle derives more utility from eating a hot dog than from eating either a hamburger or french fries, while David derives more utility from eating a hamburger than from eating either a hot dog or french fries. B. Michelle derives the same amount of utility from eating a hot dog as David derives from eating a hamburger. C. Robert will be eating french fries. D. Michelle likes hot dogs better than David does and David likes hamburgers better than Michelle does.