if-a-product-has-an-elasticity-of-supply-of-05-what-happens-to-the-quantity-supp

Question

If a product has an elasticity of supply of 0.5, what happens to the quantity supplied if the price increases by 10%?

Accepted Answer

Quantity supplied increases by 5%.

Answer

Quantity supplied increases by 10%.

Answer

Quantity supplied decreases by 5%.

Answer

Quantity supplied decreases by 10%.