Supply is inelastic if
A)a small percentage change in price results in a large percentage change in quantity supplied.
B)a large percentage change in price results in a small percentage change in quantity supplied.
C)the good is a normal good.
D)the good is an inferior good.
E)the good has many substitutes.

Question

Quizplus · Accepted Answer

Inelastic supply occurs when a large change in price results in a relatively small change in the quantity supplied. This indicates that producers are unable to easily adjust their production levels in response to changes in price.

Supply Is Inelastic If