If the percentage change in quantity supplied is 10% and the percentage change in price is 10% then the supply for the good is
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

When the percentage change in quantity supplied is equal to the percentage change in price, we have a case of unit elasticity. In this case, suppliers are able to adjust their quantity supplied to match the change in price, resulting in the same percentage change in both variables. This means that total revenue remains constant, and the elasticity of supply is equal to one.

If the Percentage Change in Quantity Supplied Is 10% and the Percentage