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What is the elasticity value for inelastic supply?

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Question

What is the elasticity value for inelastic supply?

Options

  • Greater than 1

  • Exactly 1

  • Less than 1

  • Equal to infinity

MCQ
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Solution

Less than 1

Explanation:

Inelastic supply has an elasticity value less than 1, meaning quantity changes very little when price changes.

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