If the quantity supplied responds substantially to a relatively small change in price, supply would be:
A) price elastic.
B) price inelastic.
C) negatively sloped.
D) insensitive to changes in price.

Question

Quizplus · Accepted Answer

When the quantity supplied responds substantially to a relatively small change in price, supply is said to be price elastic. This means that a change in price causes a relatively larger change in the quantity supplied.

If the Quantity Supplied Responds Substantially to a Relatively Small