Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that
A) the supply curve of snowboards shifted rightward.
B) the supply of snowboards is price elastic.
C) some firms entered into the snowboard industry.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The 15 percent increase in quantity supplied in response to a 5 percent price increase indicates that the supply of snowboards is price elastic.

Last Year in the United States, the Price of Snowboards