If a shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the
A) supply of oranges is elastic.
B) supply of oranges is inelastic.
C) demand for oranges is elastic.
D) demand for oranges is inelastic.

Question

Quizplus · Accepted Answer

The supply of oranges is elastic because the percentage change in quantity supplied (50%) is greater than the percentage change in price (28.57%).

If a Shift in the Demand Curve That Raises the Price