If the quantity supplied responds only slightly to changes in price, then:
A) supply is said to be elastic
B) increases in supply resulting from an increase in price will not shift the supply curve very much
C) supply is said to be inelastic
D) supply is said to be unit elastic

Question

Quizplus · Accepted Answer

When the quantity supplied responds only slightly to changes in price, supply is said to be inelastic. This means that increases in price will not result in a significant increase in supply, and the supply curve will not shift very much. If supply were elastic, a small price increase would result in a much larger increase in quantity supplied, and the supply curve would shift much more. If supply were unit elastic, the increase in quantity supplied would be proportional to the increase in price.

If the Quantity Supplied Responds Only Slightly to Changes in Price