Which statement is NOT true about the elasticity of supply?
A) Elasticity of supply cannot be a negative number.
B) A unitary elastic supply curve crosses the origin (0, 0) on a graph.
C) Elasticity of supply measures the percent change in quantity supplied over the percent change in price.
D) Elasticity of supply tends to fall as companies have more time to adjust their production methods.

Question

Quizplus · Accepted Answer

Elasticity of supply tends to increase, not fall, as companies have more time to adjust their production methods. This allows them to be more responsive to price changes.

Which Statement Is NOT True About the Elasticity of Supply