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Question
Assertion (A): Price elasticity of supply is less than one in the case of inelastic supply.
Reason (R): Percentage change in price is less than the percentage change in the quantity supplied.
Options
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
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Solution
Assertion (A) is true, but Reason (R) is false.
Explanation:
The assertion is true: inelastic supply has elasticity less than 1. The reason is false because in inelastic supply, the percentage change in quantity supplied is less than the percentage change in price.
