When the percentage change in the quantity supplied is twice the percentage change in price,then supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

When the percentage change in the quantity supplied is greater than the percentage change in price, the supply is elastic. In this case, the percentage change in quantity supplied is twice the percentage change in price, indicating that suppliers are very responsive to price changes and supply is elastic.

When the Percentage Change in the Quantity Supplied Is Twice