We expect the price elasticity of supply to be
C) between -1 and +1.
The price elasticity of supply
A) is the slope of the supply curve.
B) is the percentage change in quantity supplied divided by the percentage change in price.
C) is always negative.
D) does not vary between the long and the short run.
When the Gizmo Company could sell a gizmo for $10, it produced 2,500 per month. More recently, the price of a gizmo has fallen to $9 and so Gizmo is only producing 2,000 units per month. What is the price elasticity of supply for gizmos?
If the quantity supplied stays the same no matter what the price is, then supply is
A) perfectly inelastic.
B) perfectly elastic.
C) unit elastic.