Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Quantity supplied changes significantly with a price change
B
Quantity supplied remains constant regardless of price changes
C
Quantity supplied decreases as prices increase
D
Quantity supplied is unaffected by market demand
Understanding the Answer
Let's break down why this is correct
Answer
When a product has elastic supply, it means that the quantity of that product can change easily when the price changes. For example, if the price of a toy increases, manufacturers can quickly produce more toys to meet the higher demand. This quick response happens because the resources needed to make the toys are readily available, and the production process can be adjusted without much delay. Elastic supply is important because it shows that businesses can react to market changes, helping to balance supply and demand. Overall, when supply is elastic, it helps keep prices stable and ensures that customers can find what they want in the market.
Detailed Explanation
Elastic supply means that when prices go up or down, the amount made changes a lot. Other options are incorrect because Some might think that supply stays the same no matter what; It's a common mistake to think that supply goes down when prices rise.
Key Concepts
Elastic supply
Topic
Price Elasticity of Supply
Difficulty
easy level question
Cognitive Level
understand
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