When does a relatively inelastic supply occur?Option When the price elasticity of supply is equal to one When the price elasticity of supply is less than one When the price elasticity of supply is greater than one When the price elasticity of supply is zero
Question
When does a relatively inelastic supply occur?Option When the price elasticity of supply is equal to one When the price elasticity of supply is less than one When the price elasticity of supply is greater than one When the price elasticity of supply is zero
Solution
A relatively inelastic supply occurs when the price elasticity of supply is less than one. This means that the quantity supplied is not very responsive to changes in price. If the price increases by a certain percentage, the quantity supplied will increase by a smaller percentage. Conversely, if the price decreases by a certain percentage, the quantity supplied will decrease by a smaller percentage.
Similar Questions
the price elasticity of supply is A. Perfectly inelastic B. Elastic C. Unitary D. Inelastic E. Perfectly elastic
When does a relatively inelastic supply occur?
When do we know if price elasticity of demand is inelastic?Group of answer choicesAll of the aboveWhen elasticity is less than 1None of the aboveWhen absolute value of elasticity is less than 1
Price elasticity of supply is when the elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price.Question 1Select one:a.Trueb.False
When is the supply more likely to be inelastic?Option When the price increases When there are many firms When factors of production are mobile When marginal costs grow slowly
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