As per the data provided, the supply of houses for sale would be considered
D). Inelastic
- 'Inelastic supply' is described as the situation when the change in the price of a commodity evokes lesser responsiveness or change in its supplied quantity.
- In the given situation, the price of the property increases by 5% while the supply changes only by 2% which implies that the supply is inelastic.
- The first option(option A) is incorrect because unitary elastic supply implies a percentage change in price brings an equal percentage change in its supplied quantity.
- While option C is wrong because elastic supply causes a larger change in supplied quantity with a change in its price and option B is wrong because data is provided to bring a deduction.
Hence, option D is the correct answer.
Learn more about 'demand and supply' here:
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