In: Economics
if export supply is inelastic, it means exporters can change their production __when world prices change.
A. a little B. by a fixed percentage C.by a fixed amount D. a lot
Inelastic export supply means that export supply elasticity is less than 1 .
This means that
Percentage change in export supply / Percentage change in World Price < 1
This means that , Percentage change in export supply < Percentage change in World Price .
So this means that when a percentage change in world price happens , then percentage change in export supply is less than or little as compared to percentage change in world price .
Hence (A) part is a correct answer