If the percentage change in price is 10 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

When the percentage change in price is equal to the percentage change in quantity supplied, the supply is considered unit elastic. This means that the change in price is directly proportional to the change in quantity supplied, and suppliers are neither particularly sensitive nor resistant to price changes.

If the Percentage Change in Price Is 10 and the Percentage