If a large percentage fall in the price of good A results in a small percentage decrease in the quantity supplied,then
A)demand is elastic.
B)demand is inelastic.
C)demand is income inelastic.
D)supply is inelastic.
E)supply is elastic.

Question

Quizplus · Accepted Answer

The scenario describes a situation where a significant price drop leads to only a minor reduction in the quantity supplied, indicating that the supply of good A is inelastic. This means producers are not able to, or willing to, significantly change the quantity they supply in response to price changes.

If a Large Percentage Fall in the Price of Good