If the percentage change in quantity supplied is 5% and the percentage change in price is 10% 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 5%/10% = 0.5, which is less than 1, indicating that the supply is inelastic.

If the Percentage Change in Quantity Supplied Is 5% and the Percentage