When the percentage change in price equals the percentage change in quantity supplied, how do we describe that elasticity?

Choose 1 answer:
(A) Inelastic
B) Perfectly inelastic
(C) Perfectly elastic
(D) Elastic
(E) Unit elastic

Question

When the percentage change in price equals the percentage change in quantity supplied, how do we describe that elasticity?

Choose 1 answer:
(A) Inelastic
B) Perfectly inelastic
(C) Perfectly elastic
(D) Elastic
(E) Unit elastic

Accepted Answer

∻Solution∻ ‖ a ⋮ Elasticity Definition: Elasticity measures how much the quantity demanded or supplied responds to changes in price. ‖ ‖ b ⋮ Price Elasticity of Supply (PES): The PES is calculated as the percentage change in quantity supplied divided by the percentage change in price. The formula is $ PES = \frac{\% \Delta Q_s}{\% \Delta P} $. ‖ ‖ c ⋮ Unit Elastic Supply: When the PES equals 1, it means that the percentage change in quantity supplied is equal to the percentage change in price, which is known as unit elastic supply. ‖ ∻Answer∻ ⚹ E) Unit elastic ⚹ ∻Key Concept∻ ⚹ Unit Elastic Supply ⚹ ∻Explanation∻ ⚹ When the percentage change in quantity supplied is equal to the percentage change in price, the supply is described as unit elastic. ⚹◊What is the formula for calculating price elasticity of supply in economics?⍭ Generate me a similar question◊

Sia