If demand is highly inelastic and supply shifts to the left:
A) neither price nor quantity will rise much.
B) price will hardly rise at all; quantity will decline significantly.
C) price probably will rise significantly, as will quantity.
D) price will rise significantly; quantity hardly changes at all.

Question

Quizplus · Accepted Answer

When demand is highly inelastic, consumers are not very responsive to price changes. Therefore, when supply decreases (shifts to the left), the price will rise significantly, but the quantity demanded will change very little.

If Demand Is Highly Inelastic and Supply Shifts to the Left