Which of the following statements about the price elasticity of supply in the Sudanese slave trade is correct?
A) When the supply curve is more elastic, every slave bought by the redeemers is one fewer slave held in captivity.
B) When the supply curve is perfectly inelastic, every slave bought by the redeemers is one fewer slave held in captivity.
C) When the supply curve is less elastic, every slave bought by the redeemers is one additional enslaved person.
D) When the supply curve is more inelastic, every slave bought by the redeemers is one additional enslaved person.

Question

Quizplus · Accepted Answer

When the supply curve is perfectly inelastic, it means that the quantity of slaves supplied does not change in response to changes in the price. Therefore, no matter how many slaves the redeemers buy, the number of slaves held in captivity remains the same. So, every slave bought by the redeemers is one fewer slave held in captivity.

Which of the Following Statements About the Price Elasticity of Supply