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Question
When a resource has a perfectly inelastic supply curve,
A) the amount of economic rent for this resource is determined by its supply.
B) the amount of economic rent for this resource is determined by demand for the resource.
C) the amount of economic rent for this resource is determined by the government.
D) there is no economic rent being earned by this resource.
Answer
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Related questions
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Q:
Refer to the above figure. At a price of $2 per gallon, there isA) a surplus of 20,000 gallons per month. B) a shortage of 40,000 gallons per month.C) a shortage of 80,000 gallons per month. D) a shortage of 60,000 gallons per month.
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