Question

The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the quantity supplied __________________ rev: 05_14_2018 Multiple Choice a) 5%; increases by 7%. b) 8%; increases by 8%. c) 10%; stays the same. d) 7%; increases by 5%.

Answer 1

Answer:

c) 10%; stays the same. 

Explanation:

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.

Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.

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