When the percentage change in quantity supplied is greater than the percentage change in price,supply is said to be elastic.

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This statement is true according to the law of supply, which states that as the price of a good or service increases, the quantity supplied also increases. When the percentage change in quantity supplied is greater than the percentage change in price, supply is considered to be elastic, as it is highly responsive to changes in price. This means that small changes in price can lead to relatively larger changes in the quantity supplied. In contrast, if the percentage change in quantity supplied is less than the percentage change in price, supply is considered to be inelastic.

When the Percentage Change in Quantity Supplied Is Greater Than