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Supply Curves of the Form P = a + BQ,where

Question 167

Multiple Choice

Supply curves of the form P = a + bQ,where a and b are both greater than zero,will always have a price elasticity of supply


A) equal to 0.
B) that becomes more elastic at higher levels of output.
C) equal to 1.
D) that becomes more inelastic at higher levels of output.
E) equal to 1/b.

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