It is very difficult for Gourmet Chocolatier to find inexpensive and available inputs for the business.Because of this,we predict that Gourmet Chocolatier's supply to be
A) inelastic.
B) perfectly elastic.
C) elastic.
D) unit elastic.
E) nonexistent.

Question

Quizplus · Accepted Answer

Inelastic supply means that the quantity supplied does not increase or decrease significantly with a change in price. In the case of Gourmet Chocolatier, since they are having difficulty finding inexpensive and available inputs, their supply is likely to be limited and not very responsive to changes in price. Therefore, it can be predicted that their supply will be inelastic.

It Is Very Difficult for Gourmet Chocolatier to Find Inexpensive