What does the price elasticity of supply measure?
A) the responsiveness of the quantity supplied to changes in price
B) the responsiveness of the quantity demanded to the change in price
C) the responsiveness of total revenue to the change in price
D) none of the above

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of the quantity supplied to changes in price. It shows how much the quantity supplied of a good or service changes in response to a change in its price. A high price elasticity of supply indicates that suppliers can quickly respond to changes in price by increasing or decreasing the quantity supplied, while a low elasticity means that suppliers are not able to quickly adjust their output in response to price changes.

What Does the Price Elasticity of Supply Measure