The price elasticity of supply refers to:
A) a change in the supply of one good when prices in the economy change.
B) the substitution of one productive activity for another based on price changes that favor the production of certain goods.
C) the responsiveness of suppliers to changes in economic variables, except price.
D) the percentage change in the quantity supplied of one good resulting from a 1-percent increase in the price of that good.

Question

Quizplus · Accepted Answer

The price elasticity of supply is measured as the percentage change in the quantity supplied of a good resulting from a 1-percent increase in the price of that good. This shows the level of responsiveness of suppliers to a change in the price of a good.

The Price Elasticity of Supply Refers To