Asked by Hoala Chock on May 28, 2024
Verified
Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price.
Inelastic Supply
A situation where the quantity supplied of a good or service is not significantly influenced by changes in price.
Quantity Supplied
The total amount of a product that producers are willing and able to sell at a given price over a specified period.
Elastic
Describes a situation in economics where the quantity demanded or supplied of a good or service greatly changes in response to changes in price.
- Understand the concept of price elasticity of supply and the methodology for its calculation.
- Understand the distinctions between long-term and short-term elasticity for both demand and supply.
Verified Answer
SS
Sharoon SalimMay 31, 2024
Final Answer :
False
Explanation :
Supply is considered elastic if the quantity supplied responds substantially to changes in the price, and inelastic if the quantity supplied responds only slightly to changes in price.
Learning Objectives
- Understand the concept of price elasticity of supply and the methodology for its calculation.
- Understand the distinctions between long-term and short-term elasticity for both demand and supply.