What term accurately describes supply when the quantity supplied is very responsive to changes in price?
A) elastic
B) independent
C) inelastic
D) unit elastic

Question

Quizplus · Accepted Answer

When the quantity supplied is very responsive to changes in price, it is considered elastic. This means that a small change in price can cause a relatively large change in the quantity supplied. A good example of this is the supply of luxury goods - if the price of a luxury item increases, suppliers may be able to easily decrease their supply in response, as demand for the item may decline.

What Term Accurately Describes Supply When the Quantity Supplied Is