WAEC - Economics (2012 - No. 4)
If a 6% decrease in price results in more than 6% decrease in quantity supplied, supply can be regarded as
elastic
unitary elastic
perfectly inelastic
perfectly elastic
Explanation
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.