If, for a producer, large changes in price lead to relatively small changes in quantity, the producer's
A) demand is price elastic.
B) demand is price inelastic.
C) supply is price elastic.
D) supply is price inelastic.

Question

Quizplus · Accepted Answer

When large changes in price lead to relatively small changes in quantity, it indicates that the producer's response to price changes is relatively rigid or unresponsive, which is characteristic of price inelastic supply.

If, for a Producer, Large Changes in Price Lead to Relatively