The price elasticity of supply is usually a positive number because
A)quantity supplied increases in response to income increases.
B)quantity supplied increases in response to price increases.
C)the quantity demanded usually rises when price falls and therefore suppliers would want to capitalize on this increase in demand.
D)price rises when supply increases.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of quantity supplied to changes in price. A positive number indicates that as price increases, the quantity supplied also increases. This is because suppliers are willing and able to produce more of a good or service at a higher price, since it can generate higher profits.

The Price Elasticity of Supply Is Usually a Positive Number