The price elasticity of supply tells us:
A) the percentage change in quantity supplied when the price of the good changes by one percent.
B) in which direction the quantity supplied changes as we move along the supply curve.
C) how quickly supply will respond to a change in price.
D) the magnitude of a shift in the supply curve in response to a change in price.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the percentage change in quantity supplied in response to a one percent change in price, indicating how sensitive the quantity supplied of a good is to its price change.

The Price Elasticity of Supply Tells Us