If a 10 percent increase in price increases the quantity supplied by 9 percent,
A)the good is a normal good.
B)the good is an inferior good.
C)supply is unit elastic.
D)supply is inelastic.
E)supply is elastic.

Question

Quizplus · Accepted Answer

Supply is considered inelastic when the percentage change in quantity supplied is less than the percentage change in price, which is the case here (9% < 10%).

If a 10 Percent Increase in Price Increases the Quantity