If a 7 percent increase in the price of a commodity results in a 12 percent increase in the quantity supplied, supply is said to be
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

The supply is considered elastic when the percentage change in quantity supplied is greater than the percentage change in price, indicating a high responsiveness of quantity supplied to price changes.

If a 7 Percent Increase in the Price of a Commodity