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 pencil manufacturer increases production from 40 to 50 boxes 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.