If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is
A)unit elastic.
B)perfectly elastic.
C)inelastic.
D)elastic.

Question

Quizplus · Accepted Answer

When the percentage increase in price leads to a proportionately larger percentage increase in quantity supplied, it implies that the suppliers are responsive to price changes. Hence, supply is considered elastic.

If, for a Given Percentage Increase in Price, Quantity Supplied