Refer to Figure 6-10. A perfectly elastic supply curve is shown in

In centrally planned economies, most prices are not

a. established by central planners b. inflexible c. set below the market-clearing level d. based on consumer demand e. the cause of shortages of supply

The cross price elasticities among substitute goods will be extremely high when:

a. b and d. b. they are very similar to each other. c. people are consuming them frequently. d. people consume them in equal quantities. e. they are imperfect substitutes.