We generally expect the price elasticity of supply to be
A) zero.
B) negative.
C) positive.
D) positive or negative, depending on demand.

Question

Quizplus · Accepted Answer

Price elasticity of supply measures the responsiveness of the quantity supplied to changes in price. A positive elasticity indicates that a change in price causes a proportionally larger change in quantity supplied. This is generally expected because when prices increase, suppliers have an incentive to produce and sell more in order to earn higher profits. Therefore, they will be more responsive to changes in price.

We Generally Expect the Price Elasticity of Supply to Be