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The Supply of Russian Caviar from the Caspian Sea Diminished

Question 175

Multiple Choice

The supply of Russian caviar from the Caspian Sea diminished after the collapse of Soviet communism. The price of caviar rose from $395 a pound to $595 a pound. Still, revenue from the sale of caviar rose 30 percent. You can conclude that:


A) an elastic supply curve for caviar has shifted to the left.
B) an inelastic supply curve for caviar has shifted to the left.
C) the supply curve for caviar has shifted to the left along an inelastic demand curve.
D) the supply curve for caviar has shifted to the left along an elastic demand curve.

Correct Answer:

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