We know that increases in population increase the market demand for various goods. The prices of those goods will increase the most if the elasticity of supply is
A) very large
B) equal to one
C) greater than 3
D) very small
E) finite

Question

Quizplus · Accepted Answer

When the elasticity of supply is very small, it means that suppliers cannot easily increase production in response to increased demand. This limited ability to ramp up supply in the face of rising demand leads to larger price increases.

We Know That Increases in Population Increase the Market Demand