Which of the following is false?
A)The price elasticity of supply measures the sensitivity of the quantity supplied to the changes in the price of the good.
B)The price elasticity of supply is defined at the percentage change in the quantity supplied divided by the percentage change in price.
C)Goods with a supply elasticity that is greater than 1 are called relatively elastic in supply.
D)When supply is inelastic, a 1 percent change in the price of a good will induce a more than 1 percent change in the quantity supplied.

Question

Which of the following is false?
A)​The price elasticity of supply measures the sensitivity of the quantity supplied to the changes in the price of the good.
B)​The price elasticity of supply is defined at the percentage change in the quantity supplied divided by the percentage change in price.
C)​Goods with a supply elasticity that is greater than 1 are called relatively elastic in supply.
D)​When supply is inelastic, a 1 percent change in the price of a good will induce a more than 1 percent change in the quantity supplied.

Quizplus · Accepted Answer

This statement is false as inelastic supply means that a change in price will induce a proportionally smaller change in quantity supplied, so the percentage change in quantity will be less than the percentage change in price.

Which of the Following Is False