asked 178k views
4 votes
Inputs whose quantity of supply is fixed and does not respond to price increases are said to be

A) elastic in supply.
B) inelastic in supply.
C) elastic in demand.
D) perfectly competitive.

asked
User DMarczak
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8.2k points

1 Answer

6 votes

Final answer:

Inputs whose quantity of supply is fixed and unresponsive to price changes are described as having inelastic supply.

Step-by-step explanation:

Inputs whose quantity of supply is fixed and does not respond to price increases are said to be B) inelastic in supply. In the context of elasticity, inelastic supply is when the elasticity of supply is less than one, meaning that a 1 percent increase in price paid to the firm ,this will result in less than one percent which gives increase in production. This denotes a lack of responsiveness, or low responsiveness, by the firm to changes in price. Perfectly inelastic supply would be a specific case where the supply does not change at all regardless of the price change, represented graphically by a vertical supply curve.

answered
User Becuzz
by
9.2k points
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