Suppose that the price of product X rises by 20 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is:
A. negative and therefore X is an inferior good.
B. positive and therefore X is a normal good.
C. less than 1 and therefore supply is inelastic.
D. more than 1 and therefore supply is elastic.
Answer: C
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