Price elasticity of supply is a measure of the
A) relative increase in the supply curve in response to an increase in price
B) responsiveness of quantity supplied to a change in price
C) relative decrease in the supply curve in response to a change in price
D) responsiveness of quantity supplied to a change in production cost

Question

Quizplus · Accepted Answer

Price elasticity of supply measures how much the quantity supplied of a good responds to a change in the price of that good, making option B the correct answer. It does not directly relate to changes in the supply curve due to factors other than price, nor does it directly concern changes in production costs.

Price Elasticity of Supply Is a Measure of the