What happens when the price decreases in the case of a product that has elastic supply?
(A) Existing producers expand, and new producers enter the market.
(B) Some producers produce less, and others drop out of the market.
(C) New firms enter the market as older ones drop out.
(D) Existing firms continue their usual output, but they earn less.
Ans: (B) Some producers produce less, and others drop out of the market.
Economics
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All of the following countries come close to the free market benchmark except
A) Canada. B) Germany. C) North Korea. D) Singapore.
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