If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is
A)unit elastic.
B)unitarily elastic.
C)elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

When a small change in price leads to a relatively larger change in quantity supplied, the supply is considered elastic. In this case, the 8 percent decrease in price led to a 15 percent decrease in the quantity supplied, indicating that the supply of lobster is elastic.

If an 8 Percent Decrease in the Price of Lobster