The supply of product X is perfectly inelastic if the price of X rises by
A)5 percent and quantity supplied rises by 7 percent.
B)8 percent and quantity supplied rises by 8 percent.
C)10 percent and quantity supplied stays the same.
D)7 percent and quantity supplied rises by 5 percent.

Question

Quizplus · Accepted Answer

When the supply of a product is perfectly inelastic, the quantity supplied does not change regardless of changes in price. Therefore, if the price of product X rises by any percentage and the quantity supplied stays the same, it indicates perfectly inelastic supply.

The Supply of Product X Is Perfectly Inelastic If the Price