when elasticity is greater than one supply is A.not responsive to price changes OR B.Sensitive to price changes
SAT · Middle School · Tue Nov 03 2020
Answered on
B. Sensitive to price changes
When the price elasticity of supply is greater than 1 (elastic), it indicates that the quantity supplied is relatively more responsive or sensitive to changes in price. In other words, a small percentage change in price leads to a proportionally larger percentage change in the quantity supplied. This suggests that suppliers are flexible and can adjust their production levels more significantly in response to changes in market prices.