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

Question

Quizplus · Accepted Answer

The elasticity of supply is measured by the percentage change in quantity supplied divided by the percentage change in price. In this case, the percentage change in quantity supplied (10%) is greater than the percentage change in price (5%), which means that the supply is responsive to changes in price and elastic. Therefore, we can conclude that the correct answer is A) elastic.

If the Percentage Change in Price Is 5% and the Percentage