What happens if sellers respond substantially to changes in price
A)The supply curve will shift substantially when the price rises.
B)Sellers are considered to be relatively price insensitive.
C)Sellers are considered to be relatively price sensitive.
D)The price elasticity of supply equals 1.

Question

Quizplus · Accepted Answer

If sellers respond substantially to changes in price, it means they are sensitive to price changes, and this is referred to as price elasticity of supply. Therefore, choice C is correct.

What Happens If Sellers Respond Substantially to Changes in Price