Inelastic demand creates an incentive for suppliers to:
A) try to get together and limit quantity supplied.
B) try to get together and increase quantity supplied.
C) compete with each other and increase quantity supplied.
D) stop producing altogether.

Question

Quizplus · Accepted Answer

Inelastic demand means consumers are not very responsive to price changes. By limiting quantity supplied, suppliers can raise prices and increase total revenue.

Inelastic Demand Creates an Incentive for Suppliers To