question archive If the amount of beachfront real estate supplied remains the same even when the price of beachfront real estate increases, the: a) supply of beachfront real estate must be perfectly elastic
If the amount of beachfront real estate supplied remains the same even when the price of beachfront real estate increases, the: a) supply of beachfront real estate must be perfectly elastic
Subject:EconomicsPrice:2.88 Bought3
If the amount of beachfront real estate supplied remains the same even when the price of beachfront real estate increases, the:
a) supply of beachfront real estate must be perfectly elastic.
b) supply of beachfront real estate must be perfectly inelastic.
c) demand for beachfront real estate must be perfectly inelastic.
d) demand for beachfront real estate must be perfectly elastic.
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The correct answer is b) supply of beachfront real estate must be perfectly inelastic.
It is given in the question that increases in prices of beachfront real estate does not bring any change in the supply of beachfront real estate. Since supplied remains the same even after the increase in prices, the supply is said to be perfectly inelastic.
