If the price elasticity of supply is 3, supply is:
A)unaffected by price changes.
B)inelastic.
C)unitary elastic.
D)elastic.

Name: If the price elasticity of supply is 3, supply is: A)unaffected by price changes. B)inelastic. C)unitary elastic. D)elastic.
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Question

Quizplus · Accepted Answer

The price elasticity of supply being 3 indicates that supply is elastic, as it is greater than 1. This means that the quantity supplied is highly responsive to price changes.

If the Price Elasticity of Supply Is 3, Supply Is