If a 1 percent increase in price causes a 0.5 percent increase in quantity supplied, then supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) infinite.

Question

Quizplus · Accepted Answer

Supply is considered inelastic when the percentage change in quantity supplied is less than the percentage change in price, which is the case here (0.5% increase in quantity supplied for a 1% increase in price).

If a 1 Percent Increase in Price Causes a 0