If the price elasticity of supply for wheat is less than 1,then the supply of wheat is
A)inelastic.
B)elastic.
C)unit elastic.
D)quite sensitive to change in price.

Question

Quizplus · Accepted Answer

When the price elasticity of supply (PES) for a product is less than 1, it indicates that the percentage change in the quantity supplied is less than the percentage change in price. This means that the supply of wheat does not respond much to changes in price, and is hence considered inelastic. In other words, even if the price of wheat increases, the increase in the quantity supplied is relatively less.

If the Price Elasticity of Supply for Wheat Is Less