The price of beef increased by 20 percent and the quantity supplied increased by 10 percent.The supply of beef is
A) elastic.
B) perfectly elastic.
C) perfectly inelastic.
D) inelastic.
E) unit elastic.

Question

Quizplus · Accepted Answer

When the price of beef increased by 20 percent, the quantity supplied increased by only 10 percent. This indicates that the supply of beef is inelastic. Inelastic supply occurs when an increase in price leads to a proportionately smaller increase in quantity supplied.

The Price of Beef Increased by 20 Percent and the Quantity