The price elasticity of supply is always negative.

Question

Quizplus · Accepted Answer

The price elasticity of supply can be positive, zero or negative depending on the nature of the good and the availability of inputs. A positive elasticity of supply means that the quantity supplied increases as the price increases, indicating that producers are willing and able to increase production as the price goes up. A zero elasticity of supply means that the quantity supplied does not change as the price changes, indicating that producers are unable to increase production. A negative elasticity of supply means that the quantity supplied decreases as the price increases, indicating that producers are unwilling or unable to increase production.

The Price Elasticity of Supply Is Always Negative