Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply

Economics Dec 13, 2020

Inputs whose quantity of supply is fixed and whose demand does not respond to price increases are said to be elastic in supply. Indicate whether the statement is true or false

Expert Solution

Answer is False

We are given that the quantity supplied remains the same, whatever be the price. This means the quantity supplied is totally unresponsive to changes in price.This is a case of perfectly inelastic supply.
Supply is said to be elastic if the percentage change in quantity supplied is more than the percentage change in price.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote