If an increase in price from $1.20 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,
A)demand is elastic
B)demand is inelastic
C)demand is unit elastic
D)supply is elastic
E)supply is inelastic

Question

Quizplus · Accepted Answer

The increase in price caused a large increase in the quantity supplied, indicating that suppliers are quite responsive to changes in price. This suggests that supply is elastic.

If an Increase in Price from $1