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JAMB Economics 2002 Question 1

Question 1

Elasticity

The elasticity of supply of perishable goods is

  1. A.unitary
  2. B.inelastic
  3. C.zero
  4. D.elastic
Show the answer and explanation

Answer: B (inelastic)

Explanation

Perishable goods cannot be stored, so sellers cannot easily hold back or add to supply when the price changes: supply is inelastic.