The price elasticity of supply is a measure of the responsiveness of
A) the change in price to the quantity supplied.
B) the suppliers with respect to the change in price.
C) the quantity supplied to the change in income.
D) the quantity supplied to the changes in price.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the degree of responsiveness of the quantity supplied to changes in the price. It shows the percentage change in quantity supplied that results from a percentage change in the price of a good or service, holding all other factors constant. Therefore, option D is the correct choice.

The Price Elasticity of Supply Is a Measure of the Responsiveness