An increase in demand will increase prices least when supply is
A)elastic.
B)unit elastic.
C)inelastic (but not perfectly inelastic).
D)perfectly inelastic.

Name: An increase in demand will increase prices least when supply is A)elastic. B)unit elastic. C)inelastic (but not perfectly inelastic). D)perfectly inelastic.
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Question

Quizplus · Accepted Answer

When supply is elastic, producers can increase production easily in response to higher demand, leading to a smaller increase in prices.

An Increase in Demand Will Increase Prices Least When Supply