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Author Question: If the supply of a commodity is inelastic, what will be the effect of a fall in ... (Read 33 times)

kodithompson

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on: Jun 30, 2018
If the supply of a commodity is inelastic, what will be the effect of a fall in demand?

Question 2

In general, the number of firms is lesser in monopolistic competition compared to oligopoly.
 a. True
  b. False
  Indicate whether the statement is true or false


cswans24

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Reply #1 on: Jun 30, 2018
Answer to Question 1

If the supply of a commodity is inelastic, the quantity supplied will remain constant irrespective of price level changes. A decrease in demand will lower the market price of the commodity.

Answer to Question 2

False


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