If, for a given percentage decrease in price, quantity supplied decreases by a proportionately smaller percentage, then supply is
A)unit elastic.
B)perfectly elastic.
C)relatively inelastic.
D)elastic.

Question

Quizplus · Accepted Answer

When quantity supplied decreases by a proportionately smaller percentage compared to the percentage decrease in price, it indicates that the supply is relatively inelastic. This means that a change in price has a relatively smaller effect on the quantity supplied.

If, for a Given Percentage Decrease in Price, Quantity Supplied