In general,supply curves with an elasticity of supply between 0 and 1 are referred to as
A) Inelastic
B) Elastic
C) Perfectly elastic
D) Perfectly inelastic

Question

Quizplus · Accepted Answer

Supply curves with an elasticity of supply between 0 and 1 are referred to as inelastic. This means that a change in price will cause a proportionally smaller change in quantity supplied. In other words, if the price of a good increases, the quantity supplied will not increase by a significant amount. This often occurs with goods that are difficult or costly to produce, such as luxury items or goods with limited resources.

In General,supply Curves with an Elasticity of Supply Between 0