The price elasticity of supply along a typical supply curve is
A)constant.
B)equal to zero.
C)higher at low levels of quantity supplied and lower at high levels of quantity supplied.
D)lower at low levels of quantity supplied and higher at high levels of quantity supplied.

Question

Quizplus · Accepted Answer

The price elasticity of supply is typically higher at low levels of quantity supplied because producers can more easily increase production. As quantity supplied increases, it becomes harder to increase production further, reducing elasticity.

The Price Elasticity of Supply Along a Typical Supply Curve