Which term describes when a change in price results in a proportionately smaller change in quantity supplied?

The term that describes a situation where a change in price results in a proportionately smaller change in quantity supplied is known as inelastic supply. This concept focuses on the responsiveness of quantity supplied to changes in price.

When supply is inelastic, suppliers do not significantly increase or decrease the quantity supplied in response to price changes. This often occurs in markets where production cannot be easily adjusted, perhaps due to constraints such as limited availability of resources, production capacity, or time required to increase output. For example, if the price of a product rises but suppliers cannot quickly ramp up production due to these constraints, the quantity supplied will not increase significantly, indicating inelastic supply.

In contrast, elastic supply would mean that suppliers can easily adjust quantity supplied in response to price changes, while indirect tax relates to a cost imposed on goods, and fixed costs are costs that do not change with the level of output. Thus, inelastic supply captures the scenario described in the question accurately.