The price elasticity of supply tells us:
A)the percentage change in quantity supplied as we change the price of the good by one percent.
B)in which direction the quantity supplied changes as we move along the supply curve.
C)how quickly the supply will respond to a change in price.
D)the magnitude of shift in supply in response to a change in price.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the percentage change in quantity supplied resulting from a one percent change in price, indicating the responsiveness of supply to price changes.

The Price Elasticity of Supply Tells Us