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Given a Relatively, but Not Perfectly, Price Elastic Supply Curve

Question 32

Multiple Choice

Given a relatively, but not perfectly, price elastic supply curve, an increase in demand will certainly:


A) raise price but leave quantity sold unchanged.
B) raise price and increase quantity sold.
C) lower price, since supply cannot increase except through the inducement of higher price.
D) reduce quantity sold but leave price unchanged.
E) do none of the above, since "increase in demand" refers to a movement along a given demand curve.

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