Answer:
When a percentage change in price leads to the same percentage change in the quantity supplied. This means that supply is unit elastic
Explanation:
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
Price elasticity of supply = percentage change in quantity supplied / percentage change in price
Supply is unit elastic if a small change in price has an equal and proportionate effect on quantity supplied.
For example, a 20% increase in price leads to 20% increase in the quantity supplied
Elasticity of supply = 20% / 20% = 1
