The law of supply suggests that the price-elasticity of supply is
A) positive.
B) negative.
C) always greater than 1.
D) always less than 1.

Question

Quizplus · Accepted Answer

The law of supply suggests that as price increases, quantity supplied also increases, implying a positive relationship between price and quantity supplied. This positive relationship indicates that as the price of a good increases, suppliers will produce and supply more of it. Therefore, the price-elasticity of supply is positive.

The Law of Supply Suggests That the Price-Elasticity of Supply