-The fact that there is a very limited amount of land in Hong Kong means the supply of new apartments in Hong Kong is
A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly elastic.
E) limited by the demand.

Question

-The fact that there is a very limited amount of land in Hong Kong means the supply of new apartments in Hong Kong is
A) inelastic. 
B) elastic. 
C) unit elastic. 
D) perfectly elastic. 
E) limited by the demand.

Quizplus · Accepted Answer

The supply of new apartments in Hong Kong is inelastic due to the very limited amount of land. This means that the ability to increase the supply in response to price changes is restricted, as there isn't much land to build new apartments on.

-The Fact That There Is a Very Limited Amount of Land