Supply is very elastic when
A)The quantity supplied does not change much when price rises.
B)The quantity supplied has a large increase in response to an increase in price.
C)The quantity supply does not respond to an increase in price.
D)The quantity demanded causes the quantity supplied to increase.

Question

Quizplus · Accepted Answer

When the quantity supplied has a large increase in response to an increase in price, it shows that suppliers are very responsive to changes in price and are able to increase production quickly. This indicates a very elastic supply.

Supply Is Very Elastic When