If the supply of a product is inelastic, a large price increase will:
A)not have an effect on the quantity supplied.
B)only bring about a small increase in quantity supplied.(True Answer )Correct
C)cause the supply curve to increase by a nontrivial amount.
D)cause a modest decrease in supply.

Question

Quizplus · Accepted Answer

When the supply of a product is inelastic, it means that the quantity supplied is not very responsive to changes in price. Therefore, a large price increase will only result in a small increase in the quantity supplied, as producers are not able to quickly or easily increase their production levels in response to the higher price. This is why option B is the correct choice.

If the Supply of a Product Is Inelastic, a Large