Holding All Other Factors Constant and Using the Midpoint Method,if

Multiple Choice

Holding all other factors constant and using the midpoint method,if a calculator manufacturer increases production from 40 to 50 units when price increases by 20 percent,then supply is

A) inelastic, since the price elasticity of supply is equal to .91.
B) inelastic, since the price elasticity of supply is equal to 1.1.
C) elastic, since the price elasticity of supply is equal to 0.91.
D) elastic, since the price elasticity of supply is equal to 1.1.