Refer to the graph above. Over the $5-$6 range, supply is:

A. elastic.
B. one.
C. zero.
D. inelastic.

Answer: A

Economics

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A government will create a surplus in a market when it:

A. Sets a price ceiling above the equilibrium price B. Sets a price floor above the equilibrium price C. Sets a price floor below the equilibrium price D. Sets a price ceiling below the equilibrium price

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The interest on a business loan is an implicit cost.

Answer the following statement true (T) or false (F)

Economics