The price elasticity of supply is determined by how rapidly production costs increases as the total output of the industry increases.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures how much the quantity of a good supplied changes when the price of the good changes. It is determined by how quickly the production costs of the good increase as the industry produces more of it. Therefore, the statement is true.

The Price Elasticity of Supply Is Determined by How Rapidly