If the supply of a good is inelastic, _____.

Social Studies

1 answer:

ladessa [460]3 years ago

5 0

Answer:

A). producers will not change their quantity supplied by much even if the market price doubles.

Explanation:

'Inelastic supply' is described as the supply pattern where the quantity of the good produced remains unchanged irrespective of the changes(increase or decrease) in the price of the good. In such a situation, the product has zero sensitivity towards the movements in price. There can be several reasons like 'limited stocks or production factors, firms operating to its maximum capacity, etc.' This is why the producers would not be willing to alter the quantity of the good produced despite the doubling of the price bracket for that good. Thus, <u>option A</u> is the correct answer.

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