Inputs whose quantity is fixed and whose demand does not respond to price increases are said to be
A) elastic in supply.
B) inelastic in supply.
C) elastic in demand.
D) perfectly competitive.

Question

Quizplus · Accepted Answer

Inputs that have a fixed quantity and whose demand does not respond to changes in prices are considered inelastic in supply. This means that even if the price of the input increases, the quantity supplied will remain the same.

Inputs Whose Quantity Is Fixed and Whose Demand Does Not