The US supply curve may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is __________.
A)sufficiently elastic
B)sufficiently inelastic
C)unit elastic
D)zero

Question

Quizplus · Accepted Answer

The US supply curve may be vertical or negatively sloped if the foreign demand for US exports in terms of euros is sufficiently inelastic. This is because, with inelastic demand, changes in price do not significantly affect the quantity demanded, potentially leading to situations where the supply curve does not behave in the typical manner.

The US Supply Curve May Be Vertical or Negatively Sloped