If an increase in the demand for Monet paintings increases their equilibrium price but not the equilibrium quantity, this means that:
A)the supply of Monet paintings is perfectly elastic
B)the supply of Monet paintings is perfectly inelastic
C)the price elasticity of demand for Monet paintings is perfectly elastic
D)the price elasticity of supply for Monet paintings is perfectly inelastic

Question

Quizplus · Accepted Answer

The supply of Monet paintings is perfectly inelastic because the quantity of these paintings cannot be increased, no matter how much the price rises. This is because Monet is no longer alive to create more paintings, making the supply fixed.

If an Increase in the Demand for Monet Paintings Increases