Supply is elastic if the quantity supplied responds substantially to a change in price, and supply is inelastic if the quantity supplied responds only slightly to a change in price.

Question

Quizplus · Accepted Answer

This statement accurately defines the concepts of elastic and inelastic supply. In an elastic supply, producers are able to increase or decrease the quantity of goods or services they supply in response to changes in price, while in an inelastic supply, they are less able to do so.

Supply Is Elastic If the Quantity Supplied Responds Substantially to a Change