The price elasticity of supply
A) will be positive when supply is elastic and negative when it is inelastic.
B) will be negative when supply is elastic and positive when it is inelastic.
C) will always be positive.
D) will be positive when demand for the good is inelastic.
E) will be positive when demand for the good is elastic.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures how much the quantity supplied of a good changes in response to a change in price. It is always positive because an increase in price typically leads to an increase in quantity supplied, and vice versa.

The Price Elasticity of Supply