The supply of a good is said to be _____ when a small percentage increase in the price of the good leads to a proportionally larger change in the quantity supplied.
A)inelastic
B)elastic
C)unit elastic
D)perfectly inelastic
E)perfectly elastic

Question

Quizplus · Accepted Answer

A small percentage increase in price leads to a relatively larger change in quantity supplied, indicating a high level of responsiveness to price changes. This is typical of elastic goods, where producers can easily adjust their production levels in response to price changes.

The Supply of a Good Is Said to Be _____