During a four year period, as the price of new houses rises, the price elasticity of supply for new houses falls, as shown. All new houses were sold. What indicates that price elasticity of supply became increasingly inelastic from year to year?
- ADollar revenues to house builders declined each year.
- BEach year, the government released more land for house building.
- CThe proportionate price change was greater than the proportionate supply change.
- DThe proportionate price change was the same as the proportionate supply change.