Price elasticity of supply
A)is always a number between 0 and 1
B)is always a negative number
C)is always greater than or equal to 0
D)is always greater than 1.
E)can take on any value.

Question

Quizplus · Accepted Answer

Price elasticity of supply measures how much the quantity supplied of a good responds to a change in price. It is always greater than or equal to 0 because as price increases, the quantity supplied typically increases or remains the same, never decreases.

Price Elasticity of Supply