Suppose the supply of product X is perfectly inelastic.If there is an increase in the demand for this product,the:
A)price of the product will remain constant
B)quantity demanded will rise
C)quantity supplied will rise
D)quantity supplied of the product will remain unchanged in the immediate run
E)quantity supplied will fall

Question

Quizplus · Accepted Answer

When the supply of a product is perfectly inelastic, it means that the quantity supplied does not change regardless of changes in price. Therefore, if there is an increase in demand, the quantity supplied remains unchanged in the immediate run, as suppliers cannot adjust the quantity they supply in response to price changes.

Suppose the Supply of Product X Is Perfectly Inelastic