The price elasticity of supply is generally
A) negative.
B) zero.
C) positive.
D) decreasing at an increasing rate.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the degree of the change in the quantity supplied of a good or service in response to a change in its price. If the quantity supplied increases significantly as the price of a good or service increases, the price elasticity of supply is considered to be high or positive. If the quantity supplied does not change much in response to a price shift, the price elasticity of supply is low or zero. Generally, an increase in the price of a good or service leads to an expansion of supply, indicating a positive elasticity of supply. Therefore, option C is correct.

The Price Elasticity of Supply Is Generally