Consider a linear, upward sloping supply curve. If the supply curve sh
Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then:
A) the price elasticity of supply will increase.
B) the price elasticity of supply will increase if the slope of the supply curve is greater than one.
C) the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive.
D) the price elasticity of supply will be constant.
E) none of the above
ANSWER
C
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