If the percentage change in quantity supplied is 10% and the percentage change in price is 5% then the supply for the good is
A)elastic.
B)inelastic.
C)unit elastic.
D)perfectly inelastic.

Question

Quizplus · Accepted Answer

The price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price. Here, it is 10%/5% = 2, which is greater than 1, indicating that the supply is elastic.

If the Percentage Change in Quantity Supplied Is 10% and the Percentage