If the quantity supplied and the price change by the same percentage, then supply is
A) elastic.
B) perfectly inelastic.
C) unit elastic.
D) perfectly elastic.
E) inelastic.

Question

Quizplus · Accepted Answer

If the quantity supplied and the price change by the same percentage, it means that the elasticity of supply is equal to 1. This is known as unit elasticity. This occurs when the percentage change in quantity supplied is the same as the percentage change in price.

If the Quantity Supplied and the Price Change by the Same