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Question
Define a relatively inelastic supply.
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Solution
Supply of a commodity will be said to be inelastic if the percentage change in quantity supplied is less than the percentage change in price.
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RELATED QUESTIONS
With the help of a suitable diagram, explain the following degree of elasticity of supply.
Es = ∞
A 10 per cent increase in price of a good causes 5 per cent increase in its quantity supplied, elasticity of supply will be ______.
Assertion (A): In case of perfectly inelastic supply, supply curve is a vertical straight line supply curve.
Reason (R): Supply does not change with change in price in case of Es = 0.
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Ep > 1
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