If firms do not increase their quantity supplied when price changes, then supply is
A)perfectly elastic.
B)perfectly inelastic.
C)relatively inelastic.
D)elastic.

Question

Quizplus · Accepted Answer

When firms do not increase their quantity supplied when price changes, it means that supply is not responsive to changes in price. This is the definition of perfectly inelastic supply. In this case, the quantity supplied remains the same regardless of changes in price.

If Firms Do Not Increase Their Quantity Supplied When Price