The price elasticity of supply measures
A) the percentage change in supply from a percentage change in demand.
B) how the equilibrium price changes in response to a change in the equilibrium quantity supplied.
C) the slope of the supply curve.
D) the extent to which the quantity supplied of a good changes when the price of a good changes, other things remaining the same.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price, assuming all other factors remain constant. It does not directly relate to changes in demand, the slope of the supply curve in a strict sense, or changes in equilibrium price due to changes in quantity supplied.

The Price Elasticity of Supply Measures