If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as

  • A elastic
  • B unitary elastic
  • C perfectly inelastic
  • D perfectly elastic

The correct answer is A. elastic

The law of supply states that there is a direct relationship between the quantity supplied and the price of a commodity. If a change in price causes a change in the quantity supplied, this means the supply is elastic.

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