Inelastic supply occurs whenever the elasticity of supply value is A)negative and 1. D)positive and

Question

Inelastic supply occurs whenever the elasticity of supply value is
A)negative and < -1.
B)any positive number.
C)positive and > 1.
D)positive and < 1.

Quizplus · Accepted Answer

Inelastic supply occurs when the percentage change in quantity supplied is less than the percentage change in price. This means that the elasticity of supply value is positive but it is less than 1. Therefore, choice D (positive and < 1) is the correct answer.

Inelastic Supply Occurs Whenever the Elasticity of Supply Value Is