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

Question

Quizplus · Accepted Answer

When a given percentage decrease in price leads to a proportionately smaller percentage decrease in quantity supplied, supply is considered to be inelastic. Inelastic supply means that the quantity supplied is not responsive to price changes, which indicates that the supply curve is relatively steep.

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