Ceteris paribus, if an 8% increase in price leads to a 6% increase in the quantity supplied, then:
A)supply is elastic.
B)supply is unit elastic.
C)supply is inelastic.
D)the supply curve is perfectly vertical.
E)the supply curve is perfectly horizontal.

Question

Quizplus · Accepted Answer

Supply is inelastic because the percentage change in quantity supplied (6%) is less than the percentage change in price (8%).

Ceteris Paribus, If an 8% Increase in Price Leads to a 6