The price elasticity of supply of perishable goods is_________?
ECONOMICS
JAMB 2016
The price elasticity of supply of perishable goods is_________?
- A. Elastic
- B. Unitary
- C. Inelastic
- D. Zero
Correct Answer: C. Inelastic
Explanation
In case of perishable goods such as vegetables, fruits, and other eatables, thesupply would be inelastic.This is because the supply of perishable goods cannot be increased or decreased easily. As supply cannot be increased or decreased easily, therefore elasticity of supply is said to be relatively inelastic.
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