Suppose that a 1% decrease in the price of a good results in a 5% decrease in the quantity supplied.Supply would be categorized as being

Name: Suppose that a 1% decrease in the price of a good results in a 5% decrease in the quantity supplied.Supply would be categorized as being
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In this scenario, the percentage change in quantity supplied (5%) is greater than the percentage change in price (1%), indicating that supply is responsive to changes in price, making it elastic.

Suppose That a 1% Decrease in the Price of a Good