If the elasticity of supply coefficient for a good is one-sixth (in absolute terms), we know:
A)that for every 1% increase in quantity, there will be a 6% increase in price.
B)that for every 1% increase in quantity, there will be a 6% decrease in price.
C)that for every 6% increase in quantity, there will be a 1% increase in price.
D)that for every 6% increase in quantity, there will be a 1% decrease in price.

Question

If the elasticity of supply coefficient for a good is one-sixth (in absolute terms), we know:
A)​that for every 1% increase in quantity, there will be a 6% increase in price.
B)​that for every 1% increase in quantity, there will be a 6% decrease in price.
C)​that for every 6% increase in quantity, there will be a 1% increase in price.
D)​that for every 6% increase in quantity, there will be a 1% decrease in price.

Quizplus · Accepted Answer

The elasticity of supply coefficient of one-sixth means that for every 1% increase in quantity supplied, the price increases by 6%.

If the Elasticity of Supply Coefficient for a Good Is