If all returns to a resource are in the form of economic rent,_____
A)the demand curve for that resource is horizontal.
B)the demand curve for that resource is vertical.
C)the supply curve of that resource is horizontal.
D)the supply curve of that resource is vertical.
E)the demand curve for that resource is upward sloping.

Question

Quizplus · Accepted Answer

The supply curve of that resource is vertical because economic rent is a concept used when the supply of a resource is perfectly inelastic, meaning it does not change regardless of the price. This is represented by a vertical supply curve.

If All Returns to a Resource Are in the Form