Which of the following statements about the price elasticity of supply for slaves is correct?
A) When the supply curve is more elastic every slave bought by the redeemers is one fewer slave held in captivity.
B) When the supply curve is perfectly inelastic every slave bought by the redeemers is one fewer slave held in captivity.
C) When the supply curve is less elastic every slave bought by the redeemers is one additional enslaved person.
D) When the supply curve is more inelastic every slave bought by the redeemers is one additional enslaved person.

Question

Quizplus · Accepted Answer

When the supply curve for slaves is perfectly inelastic, it means that the quantity supplied of slaves is not affected by a change in price. Therefore, every slave bought by the redeemers would result in one fewer slave held in captivity.

Which of the Following Statements About the Price Elasticity of Supply