If the elasticity of supply of a product is greater than one, then supply is:
A) elastic
B) inelastic
C) unit elastic
D) not very sensitive to change in price

Question

Quizplus · Accepted Answer

If the elasticity of supply of a product is greater than one, it means that a small change in the price of the product will lead to a proportionately greater change in the quantity supplied. This indicates that supply is elastic, as it is very sensitive to changes in price.

If the Elasticity of Supply of a Product Is Greater