When the percentage change in the quantity supplied is less than the percentage change in price,the supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly unit elastic.
E) perfectly elastic.

Question

Quizplus · Accepted Answer

When the percentage change in the quantity supplied is less than the percentage change in price, the supply is considered inelastic. This means that the quantity supplied is not very responsive to changes in price. In other words, a small change in price results in a relatively smaller change in quantity supplied.

When the Percentage Change in the Quantity Supplied Is Less