The supply of antiques is highly inelastic so increases in demand have a large effect on increases in price.Group startsTrue or FalseTrue, unselectedFalse, unselected
Question
The supply of antiques is highly inelastic so increases in demand have a large effect on increases in price.Group startsTrue or FalseTrue, unselectedFalse, unselected
Solution
True. The supply of antiques is highly inelastic because the quantity cannot be easily changed - we can't produce more antiques on demand. Therefore, when demand increases, the price tends to increase significantly because the supply cannot adjust to meet the new demand.
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