Price elasticity of supply is used to gauge
A)how responsive suppliers are to price changes.
B)how responsive suppliers are to changes in future prices.
C)how responsive suppliers are to a change in demand.
D)how responsive sales are to a change in input prices.

Question

Quizplus · Accepted Answer

Price elasticity of supply (PES) measures the responsiveness of quantity supplied to a change in price. It tells us how much the quantity supplied of a good or service will change when the price of that good or service changes. Therefore, option A is the correct answer as it states the definition of PES.

Price Elasticity of Supply Is Used to Gauge