Ask Question
20 July, 18:21

Which of the following is likely to make supply more inelastic? a The inputs necessary for production cannot readily be increased. b The good is necessary for survival (e. g., a life-saving drug). c The time period under consideration is quite long. d Production technology is easily adjusted to changes in price. e Consumer income is rising.

+1
Answers (1)
  1. 20 July, 18:47
    0
    Answer: Option A

    Explanation: Elasticity refers to the tendency of a commodity under which its supply increase or decrease with the change in price. Thus, if the supply is inelastic then it means the change in price will not affect the supply.

    If the goods that are necessary for production are not available in the market at a short notice than a change in price would not affect the supply as the supplier will not be able to increase his production or sell whatsoever.

    Hence the correct option is A.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is likely to make supply more inelastic? a The inputs necessary for production cannot readily be increased. b The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers