If the price of a good increases from $100 to $110 and quantity supplied increases from 500 units to 530 units, the supply would be classified as elastic.

Question

Quizplus · Accepted Answer

Supply is considered elastic if the percentage change in quantity supplied is greater than the percentage change in price. Here, the percentage change in price is 10%, and the percentage change in quantity supplied is 6%, indicating inelastic supply.

If the Price of a Good Increases from $100 to $110