If the price elasticity of supply for a good increases over time
A)quantity supplied becomes more sensitive to price.
B)quantity demanded is not sensitive to price.
C)quantity supplied becomes less sensitive to price.
D)quantity demanded is very sensitive to price.

Question

Quizplus · Accepted Answer

An increase in the price elasticity of supply means that the percentage change in quantity supplied is more responsive to a percentage change in price. This indicates that quantity supplied becomes more sensitive to price, making choice A the correct answer.

If the Price Elasticity of Supply for a Good Increases