If an increase in price from $1.20 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units,then _____
A)supply is perfectly elastic.
B)supply is perfectly inelastic.
C)supply is unit elastic.
D)supply is elastic.
E)supply is inelastic.

Question

Quizplus · Accepted Answer

An increase in price leads to a proportionately larger increase in quantity supplied (from 20 to 100 units), indicating that supply is sensitive to changes in price. This indicates that supply is elastic.

If an Increase in Price from $1