If the price elasticity of supply of CDs is 0.8,then the supply is inelastic.

Name: If the price elasticity of supply of CDs is 0.8,then the supply is inelastic.
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Quizplus · Accepted Answer

A price elasticity of supply (PES) coefficient of less than 1 indicates that supply is inelastic, meaning that a change in price will result in a proportionally smaller change in quantity supplied. A PES of 0.8 falls within the range of inelastic supply.

If the Price Elasticity of Supply of CDs Is 0