If the price elasticity of supply is 1.3, supply is
A) unaffected by price changes.
B) inelastic.
C) unit elastic.
D) elastic.

Name: If the price elasticity of supply is 1.3, supply is A) unaffected by price changes. B) inelastic. C) unit elastic. D) elastic.
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Question

Quizplus · Accepted Answer

A price elasticity of supply of 1.3 indicates that supply is elastic, meaning that a change in price will result in a proportionally larger change in the quantity supplied.

If the Price Elasticity of Supply Is 1