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Exhibit 6-7 -If Supply Is Perfectly Elastic

Question 107

Multiple Choice

Exhibit 6-7 Exhibit 6-7 -If supply is perfectly elastic, A) producer surplus is equal to zero. B) an increase in demand decreases producer surplus. C) an upward shift of supply decreases producer surplus. D) a downward shift of supply decreases producer surplus. E) no output is produced.
-If supply is perfectly elastic,


A) producer surplus is equal to zero.
B) an increase in demand decreases producer surplus.
C) an upward shift of supply decreases producer surplus.
D) a downward shift of supply decreases producer surplus.
E) no output is produced.

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