If the measured elasticity of supply coefficient equals 0.6, then supply is:
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.

Question

If the measured elasticity of supply coefficient equals 0.6, then supply is:
A)​perfectly elastic.
B)​elastic.
C)​unit elastic.
D)​inelastic.

Quizplus · Accepted Answer

When the elasticity of supply coefficient is less than 1 (i.e., between 0 and 1), it indicates that the supply is inelastic. This means that the percentage change in quantity supplied is less than the percentage change in price.

If the Measured Elasticity of Supply Coefficient Equals 0