Elasticity of supply is
A)the responsiveness of supply to changes in costs.
B)the percentage change in quantity supplied due to a percentage change in price.
C)the responsiveness of the price to changes in supply.
D)1 minus the elasticity of demand.
E)the change in quantity supplied due to a change in quantity demanded.

Question

Quizplus · Accepted Answer

Elasticity of supply refers to the percentage change in quantity supplied that results from a percentage change in price. It measures how responsive suppliers are to changes in the market price. Option A refers to the concept of marginal cost and its relationship with supply, while option C refers to the responsiveness of price to changes in supply which is the concept of elasticity of demand. Option D is the complement of elasticity of demand and not related to elasticity of supply. Option E refers to the concept of shifts in demand affecting the quantity supplied.

Elasticity of Supply Is