Relatively inelastic supply refers to a situation where the quantity supplied of a good or service is not very responsive to changes in price. This means that even if the price increases or decreases, the quantity supplied does not change significantly.
Imagine you are selling lemonade at a fixed price. If your supply is relatively inelastic, it means that no matter how much people are willing to pay for your lemonade, you can only produce and sell a limited amount because you have a small lemonade stand and limited resources.
Elasticity of Supply: The measure of how responsive the quantity supplied is to changes in price.
Perfectly Inelastic Supply: A situation where the quantity supplied does not change at all when there is a change in price.
Cross Elasticity of Supply: The measure of how responsive the quantity supplied of one good is to changes in the price of another good.
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