Supply is inelastic if
A)a small percentage change in price results in a larger percentage change in quantity supplied.
B)a large percentage change in price results in a smaller percentage change in quantity supplied.
C)the good is a normal good.
D)the good is an inferior good.
E)the good has many substitutes.

Question

Quizplus · Accepted Answer

Supply is inelastic when a large percentage change in price results in a smaller percentage change in quantity supplied, indicating that the quantity supplied is not very responsive to price changes.

Supply Is Inelastic If