If the elasticity of supply is greater than 1, the supply is relatively

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Multiple Choice

If the elasticity of supply is greater than 1, the supply is relatively

Explanation:
Elasticity of supply shows how much producers respond to price changes. When the elasticity of supply is greater than 1, a given percentage rise (or fall) in price leads to a larger percentage change in the quantity supplied. That means supply is elastic—producers adjust output more than proportionally as price changes. By contrast, if elasticity were less than 1, supply would be inelastic (less responsive); if it were exactly 1, supply would be unit elastic (proportional response); and if it were zero, supply would be perfectly inelastic (no response).

Elasticity of supply shows how much producers respond to price changes. When the elasticity of supply is greater than 1, a given percentage rise (or fall) in price leads to a larger percentage change in the quantity supplied. That means supply is elastic—producers adjust output more than proportionally as price changes. By contrast, if elasticity were less than 1, supply would be inelastic (less responsive); if it were exactly 1, supply would be unit elastic (proportional response); and if it were zero, supply would be perfectly inelastic (no response).

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