Assume that the price of product Y decreases by 5% and the quantity supplied decreases by 2%. The coefficient of price elasticity of supply for product Y is:

A Negative and therefore Y is an inferior product.
B Less than one and therefore supply is-inelastic
C More than-one and therefore supply is elastic,
D Negative & supply curve is download slopping.

Correct Answer: Less than one and therefore supply is-inelastic

Bissoy MCQ
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