The percentage change in the quantity supplied of a good or service when its price changes by one percent is:
A) price elasticity of supply.
B) price elasticity of demand.
C) cross-price elasticity.
D) income elasticity of supply.

Question

Quizplus · Accepted Answer

The definition given matches the definition of price elasticity of supply, which measures the percentage change in quantity supplied in response to a one percent change in price. The other options, such as price elasticity of demand, cross-price elasticity, and income elasticity of supply, all measure different aspects of the relationship between price and quantity, but are not specifically focused on the change in quantity supplied when price changes.

The Percentage Change in the Quantity Supplied of a Good