If the elasticity of supply coefficient equals 0.6, then the supply of the good is said to be:
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.
E)perfectly inelastic.

Question

Quizplus · Accepted Answer

The elasticity of supply coefficient of 0.6 indicates that the supply is inelastic, meaning that the percentage change in quantity supplied is less than the percentage change in price.

If the Elasticity of Supply Coefficient Equals 0