If the quantity of walkie-talkies supplied increases by 5 percent when price increases by 12 percent, then
A)the supply of walkie-talkies is inelastic.
B)the supply of walkie-talkies is elastic.
C)the walkie-talkie supply curve will shift to the right.
D)the walkie-talkie supply curve will shift to the left.

Question

Quizplus · Accepted Answer

The supply is inelastic because the percentage change in quantity supplied (5%) is less than the percentage change in price (12%).

If the Quantity of Walkie-Talkies Supplied Increases by 5 Percent