What is meant by the term supply elasticity?
A)The responsiveness of the change in the quantity demanded to a change in price of a product.
B)The change in quantity supplied as a percentage of the change in the quantity demanded.
C)The change in the price of a product as a result of a change in the quantity supplied.
D)The responsiveness of a change in the quantity supplied of a product as a result of a change in price.

Question

Quizplus · Accepted Answer

Supply elasticity refers to the responsiveness of the quantity supplied of a product to a change in its price. It measures the percentage change in quantity supplied as a result of a percentage change in price. Essentially, it helps to determine how easily and quickly producers can adjust their output in response to changes in market conditions.

What Is Meant by the Term Supply Elasticity