If the supply of a product is inelastic, a large price increase will:
A) not have an effect on the quantity supplied.
B) only bring about a small increase in quantity supplied.
C) cause the supply curve to increase by a nontrivial amount.
D) cause a modest decrease in supply.

Question

Quizplus · Accepted Answer

When supply is inelastic, it means that the quantity supplied does not change significantly with a change in price. Therefore, a large price increase will only result in a small increase in the quantity supplied.

If the Supply of a Product Is Inelastic, a Large