The price elasticity of supply measures how responsive
A)sellers are to a change in price.
B)sellers are to a change in buyers' income.
C)buyers are to a change in production costs.
D)equilibrium price is to a change in supply.

Question

Quizplus · Accepted Answer

The price elasticity of supply specifically measures the degree of responsiveness of the quantity supplied to a change in the price of a good or service. It reflects how quickly and significantly producers adjust their output levels in response to fluctuations in the market price. Therefore, the correct option is (A) sellers are to a change in price. The other options are not relevant to the concept of price elasticity of supply.

The Price Elasticity of Supply Measures How Responsive