The fact that there is a very limited amount of land in Hong Kong means the supply of new apartments in Hong Kong is
A) limited by the demand.
B) perfectly elastic.
C) elastic.
D) unit elastic.
E) inelastic.

Question

Quizplus · Accepted Answer

The fact that there is a very limited amount of land in Hong Kong means that the supply of new apartments is limited, and as a result, less responsive to changes in demand. This suggests that the supply of new apartments in Hong Kong is inelastic.

The Fact That There Is a Very Limited Amount of Land