The price elasticity of supply of perishable goods is _________?

A. Elastic
B. Unitary
C. Inelastic
D. Zero

Correct Answer:

Option C – Inelastic

Explanation

In case of perishable goods such as vegetables, fruits, and other eatables, the supply would be inelastic. This is because the supply of perishable goods cannot be increased or decreased easily. As supply cannot be increased or decreased easily, therefore elasticity of supply is said to be relatively inelastic.