Because the price elasticity of supply for jumbo jets is 0.35,the supply of jumbo jets is
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.
E) perfectly inelastic.

Question

Quizplus · Accepted Answer

With a price elasticity of supply of 0.35, the supply of jumbo jets is inelastic. This means that a change in price will result in a proportionately smaller change in quantity supplied. In other words, if the price of jumbo jets were to increase, the quantity supplied would not increase by a large amount, as the supply is relatively fixed in the short term.

Because the Price Elasticity of Supply for Jumbo Jets Is