Supply is very inelastic if the quantity supplied cannot respond quickly to an increase in price.
Answer the following statement true (T) or false (F)
True
It is true that inelastic supply indicates that producers cannot quickly increase production after a price increase. An inelastic supply curve is very steep. This means even though price is rising, quantity supplied increases slightly.
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A rich nation will trade with a poor nation because the
A) poor nation has the absolute advantage in producing all products. B) poor nation has the comparative advantage in producing a product. C) rich nation has the comparative advantage in producing all products. D) rich nation has the absolute advantage in producing all products.
Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates
What will be an ideal response?