A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2011 · Q131 Mark
When is a rise in the price of a product likely to cause more resources to be allocated to its production?
Aif demand increases when the supply curve is perfectly inelastic
Bif the demand curve shifts to the right when the supply curve is inelastic
Cif supply increases when the demand curve is perfectly inelastic
Dif the supply curve shifts to the left when the demand curve is elastic
✓ Correct answer
B: if the demand curve shifts to the right when the supply curve is inelastic
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