Supply is very inelastic when
A)The quantity supplied changes little when the price increases.
B)The quantity supplied changes a lot when price increases.
C)The quantity supplied does not change at all when price increases.
D)The quantity supplied changes only when demand changes.

Question

Quizplus · Accepted Answer

When supply is very inelastic, the quantity supplied changes little in response to changes in price. This means that even if the price increases significantly, the quantity supplied will not change much. This could be due to factors such as limited availability of the product, difficulty in increasing production in the short run, or lack of viable substitutes.

Supply Is Very Inelastic When