Assertion (A): Supply of a good that is easy to store is more elastic.
Reason (R): Stocks can be released when the price rises and held back when it falls.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true, and R explains A: storage lets quantity offered respond to price.

Concept: Storage and elasticity of supply
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrice elasticity of supply

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Ten questions from Perfect Competition & Supply, at your own pace.

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Ten questions from Perfect Competition & Supply, at your own pace.

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Assertion (A): Supply of a good that is easy to store is more elastic.Reason (R): Stocks can be released when the price rises and held back when it falls.

Explanation

Assertion (A): Supply of a good that is easy to store is more elastic.
Reason (R): Stocks can be released when the price rises and held back when it falls.