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Question
When percentage change in quantity supplied is equal to percentage change in price then it is ______ supply.
Options
Unit elastic
Perfectly inelastic
Perfectly elastic
Normal elastic
MCQ
Fill in the Blanks
Solution
When percentage change in quantity supplied is equal to percentage change in price, then it is unit elastic supply.
Explanation:
The elasticity of supply is said to be unitary when a given percentage change in the price of a commodity generates an identical percentage change in the amount provided.
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Elasticity of Demand and Elasticity of Supply
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