JAMB Economics 2020 Objective — Question 16
Question 16 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.
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If the supply of a product is elastic, a small reduction in price will
- A. reduce the cost of production
- B. reduce the quantity suppliedCorrect
- C. increase the quantity supplied
- D. lead to no change in the quantity supplied
Explanation
With elastic supply, a small fall in price causes a proportionally larger fall in quantity supplied.
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