price elasticity of supply of a good is 0.8. is the supply elastic or inelastic and why
Dear Student,
If elasticity of suppy of a good is 0.8, its supply will be inelastic. This is due to the reason that if elasticity of supply of a commodity is less than 1, then it means that a proportionate increase in its price will lead to a less than proportionate increase in its supply.
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If elasticity of suppy of a good is 0.8, its supply will be inelastic. This is due to the reason that if elasticity of supply of a commodity is less than 1, then it means that a proportionate increase in its price will lead to a less than proportionate increase in its supply.
Keep Posting!!