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

Question

Quizplus · Accepted Answer

When the percentage change in the quantity supplied is less than the percentage change in price, it means that the supply is not very responsive to changes in price. This is indicative of inelastic supply.

When the Percentage Change in the Quantity Supplied Is Less