If the measured elasticity of supply coefficient equals 1.3, then supply is:
A)perfectly elastic.
B)elastic.
C)unit elastic.
D)inelastic.

Question

If the measured elasticity of supply coefficient equals 1.3, then supply is:
A)​perfectly elastic.
B)​elastic.
C)​unit elastic.
D)​inelastic.

Quizplus · Accepted Answer

An elasticity of supply coefficient greater than 1 means that a small change in price leads to a proportionately larger change in quantity supplied. This indicates that supply is elastic, meaning that producers are sensitive to changes in price and will adjust their output accordingly.

If the Measured Elasticity of Supply Coefficient Equals 1