Assume that the price of product X rises by 13 percent and the quantity supplied of X increases by 15 percent.The supply for good X is:
A)perfectly elastic
B)perfectly inelastic
C)inelastic
D)elastic
E)unit-elastic

Question

Quizplus · Accepted Answer

The percentage increase in quantity supplied (15%) is greater than the percentage increase in price (13%), indicating that the supply of good X is responsive to changes in price. This suggests that the supply of good X is relatively elastic.

Assume That the Price of Product X Rises by 13