wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The supply is _________, when a small change in price causes a greater change in quantity supplied.

A
relatively more elastic
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
perfectly elastic
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
perfectly inelastic
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
relatively inelastic
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B relatively more elastic
A price elasticity supply is relatively elastic where the quantity supplied changes by a larger percentage than the price change.
An example would be a product that’s easy to make and distribute, such as a fidget spinner. The resources to make additional spinners are readily available and the total cost would be minimal to ramp production up or down.
Hence, the correct option is A.

flag
Suggest Corrections
thumbs-up
1
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Capitalism
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon