If the Supply of a Product Is Inelastic, This Implies

question 2

Multiple Choice

If the supply of a product is inelastic, this implies that a specific percentage change in price leads to:

• A) an equal percentage change in the quantity supplied.
• B) a larger percentage change in the quantity supplied.
• C) a smaller percentage change in the quantity supplied.
• D) no percentage change in the quantity supplied.

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Definitions:

Sales Contract

A legal agreement between a buyer and seller outlining the terms of a sale of goods or services.

Insure

To provide or obtain insurance coverage against risk or loss.

Rights

Entitlements or freedoms granted to individuals or groups by law, social convention, or moral principles.

Liabilities

Financial obligations or debts that a company or individual owes to others.