Demand and supply curve(perfectly inelstic)

2006-12-09 4:48 am
如果demand curve是一般的,而supply curve是直立(好似個1字),兩條線并沒有交叉點。
At zero price, the excess supply is the least. When the price increases, surplus increases. Then what will be the price?

A zero
B positive
C negative
D none of the above

回答 (2)

2006-12-09 7:50 am
✔ 最佳答案
Answer : A

Because the least excess supply is at zero price level. No one is willing to give money for providing goods or services at negative price. Therefore, negative price is meaningless and not exist. Also when the price increase, the excess supply (Qd < Qs) will also increase. So the goods should be at zero price.
2006-12-09 5:37 am
D none of the above


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