If a good's price increases by 2 percent, then its quantity supplied increases by more than 2 percent. This means
A) supply is elastic.
B) supply is unit-elastic.
C) supply is inelastic.
D) the good has good substitutes.

Question

Quizplus · Accepted Answer

When the quantity supplied of a good changes by a greater percentage than the change in price, it indicates that supply is elastic. This suggests that suppliers are able and willing to adjust their production and allocate more resources to it in response to an increase in price.

If a Good's Price Increases by 2 Percent, Then Its