JAMB Economics 2011 Paper

Concept:Elastic supply means quantity supplied changes by a larger percentage than price.Explanation:Price elasticity of supply is $E_s = \frac{\%\Delta Q_s}{\%\Delta P}$.For elastic supply, $E_s > 1$, so $\%\Delta Q_s > \%\Delta P$.Revenue is $TR = P \times Q$.Therefore, if price increases, quantity supplied increases by a greater percentage, so total revenue rises by more than the percentage increase in price.Answer:C. increase by more than the percentage increase in price.