5. If a supply curve is a vertical straight line, the value clasticity of supply (e,) is:
C) 12 & 9
D. 0
And what
B. >1
E. None
C. <1
6....is a curve that shows the various possible combinations of goods and services that the society can produce given its resources and technology.
A) Market demand and supply curve
B) Production possibility frontier
D) Production possibility curve
E) B&D
C) Individual demand and supply curve
The answer to question 5 is E. None. A vertical supply curve indicates that the quantity supplied does not change regardless of price, meaning there is no responsiveness or elasticity of supply.
The answer to question 6 is D. Production possibility curve. A production possibility curve shows the different combinations of goods and services that can be produced with the given level of resources and technology in a society.
5. If a supply curve is a vertical straight line, the value of elasticity of supply (e) is:
D) 0
A vertical supply curve indicates perfectly inelastic supply, meaning that the quantity supplied does not change in response to changes in price. In this case, the elasticity of supply is zero because there is no responsiveness of supply to price changes.
6. The correct answer is:
D) Production possibility curve
A production possibility curve shows the various possible combinations of goods and services that a society can produce given its resources and technology. It illustrates the trade-offs between different combinations of goods and services that can be produced when resources are limited.