Question

If the percentage change in supply is less then the percentage change in price it is called.

• A. Unit elasticity of supply
• B. Perfectly elastic supply
• C. More elastic supply
• D. Inelastic supply

Answer 1

The correct option is D Inelastic supply

If $\%$ $\Delta$Q $<$ $\%$ $\Delta$P then there is less then one elastic supply i.e., $e<1$.
Supply is price elastic when the percentage change in quantity supplied is greater than the percentage change in price, and supply is price inelastic when the percentage change in quantity supplied is less than the percentage change in price.