Question

Elasticity of supply is greater than one when :
(a) proportionate change in quantity supplied is more than the proportionate change in price
(b) proportionate change in price is greater than the proportionate change in quantity supplied
(c) change in price and quantity supplied are equal
(d) None of these

Answer 1

Answer:

(b) - proportionate change in the price is greater than the proportionate change in quantity supplied.