If the quantity supplied of a good responds strongly to a change in the price of an input:
A)the price elasticity of demand is inelastic
B)the income elasticity of supply is inelastic
C)the income elasticity of supply is elastic
D)the price elasticity of supply is elastic

Question

Quizplus · Accepted Answer

When the quantity supplied of a good responds strongly to a change in the price of an input, it means that the production of that good is sensitive to changes in input prices. This indicates that the price elasticity of supply is high or elastic, as a small change in input prices leads to a relatively large change in the quantity supplied.

If the Quantity Supplied of a Good Responds Strongly to a Change