Question

in case of _____an increase in demand will lead to rise in equilibrium quantity but no change in equilibrium price ​
1)perfectly elastic supply,
2)perfectly inelastic supply
,3)highly elastic supply,
4)less elastic supply

Answer 1

Answer:

2.

Explanation:

2.perfectly inelastic supply

Answer 2

The correct option is 2)perfectly inelastic supply.

Explanation:

• When just one quantity of an item can be offered at a equillibrium price, this is referred to as a equillbrium supply. The price elasticity of supply (PES) is equal to zero.
• Corporations seldom experience an inelastic supply curve since, traditionally, firms would always supply more as the price of the commodity they produce rises.
• One example would be the UK housing market, where demand has been outstripping supply, causing house prices to rise. This is especially true in cities like London, where it is nearly hard to obtain fresh land on which to build new homes. This explains why the housing market in this area is so pricey.