Question

An economist studying the market for wild Alaskan salmon determines the price elasticity of supply to be 0.43. a. In this case, the price elasticity of supply is said to be: inelastic. elastic. unit-elastic. b. A 10% increase in price will lead to: exactly a 10% increase in quantity supplied. a more than 10% increase in quantity supplied. a less than 10% increase in quantity supplied.

Answer 1

It will result in 10% increase in quantity supplied.

Answer 2

A. Inelastic

B. a less than 10% increase in quantity supplied

Step-by-step explanation:

A supply is inelastic when a percentage change in quantity supplied is less than percentage change in price.

A supply is inelastic if the price elascitiy is less than 1.