When a 5% increase in price leads to an 8% increase in quantity supplied, supply is relatively inelastic.

Name: When a 5% increase in price leads to an 8% increase in quantity supplied, supply is relatively inelastic.
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Quizplus · Accepted Answer

The increase in quantity supplied is greater than the increase in price, indicating that supply is relatively elastic. A relatively inelastic supply would have a smaller increase in quantity supplied in response to a given increase in price.

When a 5% Increase in Price Leads to an 8