Price elasticities of supply are always:
A) the same as price elasticities of demand.
B) negative numbers.
C) positive numbers.
D) greater than one.
E) increased when a tax is imposed.

Question

Quizplus · Accepted Answer

Price elasticities of supply are always positive numbers, indicating the percentage change in quantity supplied when the price changes. It is not the same as price elasticities of demand, which measure the percentage change in quantity demanded when the price changes. It is not necessarily greater than one, and the imposition of a tax may or may not affect the price elasticity of supply.

Price Elasticities of Supply Are Always