If supply is highly inelastic and demand shifts to the right:
A) price probably will rise significantly; quantity hardly changes at all.
B) price will hardly change at all; quantity will rise significantly.
C) price will rise significantly as will quantity.
D) price and quantity will hardly change at all.

Question

Quizplus · Accepted Answer

When supply is highly inelastic, it means that the quantity supplied does not change much with price changes. Therefore, if demand increases (shifts to the right), the price will rise significantly because the quantity supplied cannot increase much to meet the higher demand.

If Supply Is Highly Inelastic and Demand Shifts to the Right