Author Question: If resource prices rise and the per-unit cost of producing a product increases as the firms in an ... (Read 59 times)

lunatika · **on:** Jun 30, 2018

If resource prices rise and the per-unit cost of producing a product increases as the firms in an industry expand output in response to an increase in demand, the long-run market supply curve for the product will:
a. be perfectly elastic (a horizontal line).
b. be perfectly inelastic (a vertical line).
c. slope upward to the right.
d. be more inelastic than the short-run supply curve for the product.

Question 2

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more elastic), the larger the burden of a sales tax that is borne by the sellers.
a. True
b. False
Indicate whether the statement is true or false