10
QuizMultiple Choice

Determining Market Price

Question 10 • MNPS Economics FTC 25-26

A builder must build fifty houses by the end of the year but he has run out of available land.Which best describes the builder's supply of houses?

Answer
A
elastic
B
competitive
C
inelastic
D
profitable

Explanation

The builder has run out of land, so he cannot easily increase the number of houses he can build by the end of the year. A supply that does not respond much to changes in price is inelastic. Therefore, the builder’s supply of houses is inelastic.

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