If the Supply of a Product Is Inelastic, a Large

question 127

Multiple Choice

If the supply of a product is inelastic, a large price increase will:

• A)not have an effect on the quantity supplied.
• B)only bring about a small increase in quantity supplied.(True Answer )Correct
• C)cause the supply curve to increase by a nontrivial amount.
• D)cause a modest decrease in supply.

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Definitions:

Diffusion

The process through which innovations, cultural norms, ideas, technologies, or products spread within and across societies over time.

Invention

The creation or innovation of new ideas, processes, goods, or services that did not previously exist, contributing to technological or scientific advancement.

Income

Money earned from work, investments, business, or any other sources, representing the financial gain derived by individuals or businesses.

Technological Advance

A phase of innovation where new technologies significantly improve processes, goods, or services.