The supply of any good is likely to be inelastic when
A) consumers have few good substitutes for it.
B) it is a manufactured good rather than an agricultural good.
C) it can be produced at low cost.
D) there are very many producers of the good.
E) very little time elapses between the change in price and the change in quantity supplied.
E
You might also like to view...
When drawn against the current wage, the current labor supply shifts to the right if
A) current taxes increase. B) future taxes decrease. C) firms make more profits. D) total factor productivity increases.
Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. D) the absence of a market supply curve.