The supply of a product is considered elastic if the percentage change in quantity supplied is greater than the percentage change in price. This is known as the price elasticity of supply.

Let's look at each option:

1. 7 percent price rise and 5 percent quantity rise: Here, the quantity supplied is less responsive to the price change, so it's inelastic.

2. 5 percent price rise and 7 percent quantity rise: Here, the quantity supplied is more responsive to the price change, so it's elastic.

3. 10 percent price rise and no change in quantity: Here, the quantity supplied is not responsive at all to the price change, so it's perfectly inelastic.

4. 8 percent price rise and 8 percent quantity rise: Here, the quantity supplied is equally responsive to the price change, so it's unit elastic.

So, the supply of product X is elastic if the price of X rises by 5 percent and quantity supplied rises by 7 percent.

Question

The supply of a product is considered elastic if the percentage change in quantity supplied is greater than the percentage change in price. This is known as the price elasticity of supply.

Let's look at each option:

1. 7 percent price rise and 5 percent quantity rise: Here, the quantity supplied is less responsive to the price change, so it's inelastic.

2. 5 percent price rise and 7 percent quantity rise: Here, the quantity supplied is more responsive to the price change, so it's elastic.

3. 10 percent price rise and no change in quantity: Here, the quantity supplied is not responsive at all to the price change, so it's perfectly inelastic.

4. 8 percent price rise and 8 percent quantity rise: Here, the quantity supplied is equally responsive to the price change, so it's unit elastic.

So, the supply of product X is elastic if the price of X rises by 5 percent and quantity supplied rises by 7 percent.

Knowee AI · Accepted Answer

The supply of a product is considered elastic if the percentage change in quantity supplied is greater than the percentage change in price. This is known as the price elasticity of supply.

Let's look at each option:

1. 7 percent price rise and 5 percent quantity rise: Here, the quantity supplied is less responsive to the price change, so it's inelastic.

2. 5 percent price rise and 7 percent quantity rise: Here, the quantity supplied is more responsive to the price change, so it's elastic.

3. 10 percent price rise and no change in quantity: Here, the quantity supplied is not responsive at all to the price change, so it's perfectly inelastic.

4. 8 percent price rise and 8 percent quantity rise: Here, the quantity supplied is equally responsive to the price change, so it's unit elastic.

So, the supply of product X is elastic if the price of X rises by 5 percent and quantity supplied rises by 7 percent.

The supply of product X is elastic if the price of X rises by:Multiple Choice7 percent and quantity supplied rises by 5 percent.5 percent and quantity supplied rises by 7 percent.10 percent and quantity supplied remains the same.8 percent and quantity supplied rises by 8 percent.

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