question archive Which of the following statements illustrates an inelastic supply? A
Which of the following statements illustrates an inelastic supply? A
Subject:EconomicsPrice:2.88 Bought3
Which of the following statements illustrates an inelastic supply?
A. IBM sold its personal computing division to Lenovo.
B. Sales of Apple's new iPhone 5S have broken all previous records.
C. Farmers have not been able to respond to a rise in the price of peas.
D. Foxconn technologies, a large manufacturing company that supplies electronics, is facing a strike.
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- The answer to this question is (C) Farmers have not been able to respond to a rise in the price of peas.
Usually, the quantity supplied and price have a positive relationship, that is, move in the same direction. When the price increase, the quantity supplied will also rise. However, when the price increase and the quantity supplied fail to increase, the supply of a product is considered inelastic.
