The supply of reproductions is highly inelastic so increases in demand have a large effect on increases in price.Group startsTrue or FalseTrue, unselectedFalse, unselectedGroup ends
Question
The supply of reproductions is highly inelastic so increases in demand have a large effect on increases in price.Group startsTrue or FalseTrue, unselectedFalse, unselectedGroup ends
Solution
True. If the supply of a good is highly inelastic, it means that the quantity supplied doesn't change much with changes in price. Therefore, if demand increases, the price will increase significantly because the quantity supplied can't increase much to meet the increased demand.
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