If for a particular market a rise in price from $10 to $15 causes quantity supplied to increase from 3 million to 6 million units we can say that supply:
A)is elastic
B)is inelastic
C)is perfectly inelastic
D)is perfectly elastic
E)has a price elasticity whose numerical value is exactly equal to one

Question

Quizplus · Accepted Answer

The fact that a small percentage increase in price caused a relatively large percentage increase in quantity supplied implies that supply is elastic. Elasticity means that a given percentage change in price leads to a larger percentage change in quantity supplied.

If for a Particular Market a Rise in Price from $10