The correct answer is A. Elastic.
Elasticity of supply is a measure of how much the quantity supplied of a good or service changes in response to a change in its price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price.
A good or service is said to be elastic if the quantity supplied changes by a larger percentage than the price. In other words, if the price of a good increases by 1%, and the quantity supplied increases by 2%, then the good is elastic.
A good or service is said to be inelastic if the quantity supplied changes by a smaller percentage than the price. In other words, if the price of a good increases by 1%, and the quantity supplied increases by 0.5%, then the good is inelastic.
A good or service is said to be unitary elastic if the quantity supplied changes by the same percentage as the price. In other words, if the price of a good increases by 1%, and the quantity supplied increases by 1%, then the good is unitary elastic.
In the case of the question, if price changes by 1% and supply changes by 2%, then the supply is elastic. This is because the quantity supplied changes by a larger percentage than the price.
The other options are incorrect because they do not accurately describe the situation. Option B, inelastic, is incorrect because the quantity supplied changes by a larger percentage than the price. Option C, indeterminate, is incorrect because the information provided is sufficient to determine the elasticity of supply. Option D, static, is incorrect because the quantity supplied is changing.