Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20 percent when the market price of candy increases from R0.50 to R0.60, then supply is
inelastic, since the price elasticity of supply is equal to .91.
inelastic, since the price elasticity of supply is equal to 1.1.
elastic, since the price elasticity of supply is equal to 0.91.
elastic, since the price elasticity of supply is equal to 1.1.