If the percentage change in price is 2 and the percentage change in quantity supplied is 10, supply is
A) unaffected by price changes.
B) inelastic.
C) unit elastic.
D) elastic.

Question

Quizplus · Accepted Answer

If the percentage change in price is less than the percentage change in quantity supplied, supply is elastic. In this case, the percentage change in quantity supplied (10%) is greater than the percentage change in price (2%), which means that supply is elastic. So, the correct choice is D, elastic.

If the Percentage Change in Price Is 2 and the Percentage