If output in the calculator market increases by 5 percent when the price increases by more than 5 percent, then
A)supply is inelastic
B)supply is elastic
C)a small increase in price will cause a leftward shift of the supply curve
D)a small increase in price will cause a rightward shift of the supply curve
E)a large increase in price will cause a large shift of the supply curve

Question

Quizplus · Accepted Answer

Supply is inelastic because the percentage change in quantity supplied (5%) is less than the percentage change in price (more than 5%).

If Output in the Calculator Market Increases by 5 Percent