Price elasticity of supply:
A)is the size of the percentage change in the quantity supplied of a good or service when its price changes by one percent.
B)measures producers' responsiveness to a change in price.
C)is typically a positive number.
D)All of these are true.

Question

Quizplus · Accepted Answer

All of the options are true statements about the price elasticity of supply. Price elasticity of supply measures the responsiveness of producers to a change in price by showing the percentage change in the quantity supplied of a good or service when its price changes by one percent. It is typically a positive number, demonstrating that the quantity supplied of a product will increase as the price of the product increases.

Price Elasticity of Supply