If supply is inelastic, it follows that
A)a rise in price will not change quantity supplied.
B)a fall in price will not change quantity supplied.
C)consumers will pay 100 percent of any tax placed on sellers.
D)quantity supplied always changes more than price changes.
E)none of the above

Question

Quizplus · Accepted Answer

When supply is inelastic, it means that the quantity supplied does not change much in response to price changes, but this does not mean that quantity supplied never changes or that consumers will always bear the full burden of a tax. The statements given do not accurately describe the implications of inelastic supply, hence none of the options are correct.

If Supply Is Inelastic, It Follows That