The price elasticity of supply measures how responsive
A) consumers are to a change in price.
B) producers are to a change in price.
C) producers are to a change in resource costs.
D) producers are to consumers.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of producers to a change in the price of a good or service. If the price increases, producers are likely to supply more, and if the price decreases, they are likely to supply less.

The Price Elasticity of Supply Measures How Responsive