Supply Is Very Inelastic If the Quantity Supplied Cannot Respond

question 124

True/False

Supply is very inelastic if the quantity supplied cannot respond quickly to an increase in price.

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Definitions:

Slope

The measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change.

Budget Constraint

Represents the combinations of goods and services a consumer can purchase with their income at current prices.

Prices

The amount of money or exchange value that is asked for goods and services in the market.

Monthly Income

The total amount of income received on a monthly basis from all sources including wages, salaries, benefits, and investments.