At a co-efficient of price elasticity of supply of 0.5, supply is

At a co-efficient of price elasticity of supply of 0.5, supply is said to be inelastic. This means that a change in price will have a relatively smaller effect on the quantity supplied. In other words, if the price of a product increases by a certain percentage, the quantity supplied will only increase by a smaller percentage. If the price of a product decreases by a certain percentage, the quantity supplied will only decrease by a smaller percentage. An inelastic supply curve is relatively steep, indicating that the quantity supplied does not respond much to changes in price.