If price elasticity of supply is less than 1
A) supply is elastic.
B) demand is elastic.
C) demand is inelastic.
D) supply is inelastic.

Name: If price elasticity of supply is less than 1 A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.
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Question

Quizplus · Accepted Answer

If price elasticity of supply is less than 1, it means that a change in price will result in a proportionately smaller change in quantity supplied. This indicates that supply is inelastic.

If Price Elasticity of Supply Is Less Than 1