Question

The supply is __________, when a greater change in price leads to smaller change in quantity supplied.

• A. relatively more elastic
• B. perfectly elastic
• C. perfectly inelastic
• D. relatively inelastic

Answer 1

The correct option is D relatively inelastic

For relatively inelastic supply, the percentage change in quantity supplied changes by a lower percentage than the percentage of price change.

Inelastic goods include nuclear power, which has a long lead time given the construction, technical know-how, and long ramp-up process for plants.

Hence, the correct option is D.