If the supply of a product is inelastic, this implies that a specific percentage change in price leads to:
A) an equal percentage change in the quantity supplied.
B) a larger percentage change in the quantity supplied.
C) a smaller percentage change in the quantity supplied.
D) no percentage change in the quantity supplied.

Question

Quizplus · Accepted Answer

Inelastic supply means that the quantity supplied is not very responsive to price changes, so a specific percentage change in price leads to a smaller percentage change in the quantity supplied.

If the Supply of a Product Is Inelastic, This Implies