Asked by Rajkishore Mishra on Jul 14, 2024
Verified
For perfectly price inelastic supply,
A) price is solely determined by supply.
B) price is solely determined by demand.
C) only a government can set the price.
D) either supply or demand may set the price.
Supply
The total amount of a specific good or service that is available to consumers at a particular price level.
Demand
The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.
- Apprehend the notion of price elasticity of demand and the technique for its determination.
Verified Answer
SZ
Salsabila ZahirJul 20, 2024
Final Answer :
B
Explanation :
When supply is perfectly price inelastic, it means the quantity supplied does not change regardless of the price. Therefore, the price is determined solely by the level of demand.
Learning Objectives
- Apprehend the notion of price elasticity of demand and the technique for its determination.
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