Good Parking Spaces

Suppose the demand for parking spaces increases, but there is no increase in the quantity supplied?

A. The demand for parking spaces is an inferior good B. The supply of parking spaces is perfectly elastic C. The supply of parking spaces is unit elastic D. The supply of parking spaces is perfectly inelastic

Public Comments

1. I think it would be perfectly inelastic.
2. D. The supply of parking spaces is perfectly inelastic this is because perfectly inelastic means one price change will not affect the other. Therefore, if demand for parking spaces increases, then there is no point to increase the amount because there is no monetary gain.
3. D From Wikipedia: The demand for a good is relatively inelastic when the quantity demanded does not change much with the price change.
4. D; as the question stated "but there is no increase in the quantity supplied."
5. D is a mathematical reduction of your answer. Demand is not a good, so A is irrelevant; how are parking spaces perfectly elastic when it is recumbent upon manufacture of space, so B is an ineffective assumption; and C is the same as B. Your real answer is that the price (not cost) of parking will rise.