If the measured elasticity of supply coefficient equals 0.6, then what term accurately describes supply?
A) inelastic
B) perfectly elastic
C) unit elastic
D) elastic

Question

Quizplus · Accepted Answer

When the elasticity of supply coefficient is less than 1 (i.e., between 0 and 1), it indicates that the supply is inelastic. This means that the percentage change in quantity supplied is less than the percentage change in price.

If the Measured Elasticity of Supply Coefficient Equals 0