The price elasticity of supply
A) is the slope of the supply curve.
B) is the percentage change in quantity supplied divided by the percentage change in price.
C) is always negative.
D) does not vary between the long and the short run.

Question

Quizplus · Accepted Answer

The price elasticity of supply is defined as the percentage change in quantity supplied divided by the percentage change in price. It is a measure of the responsiveness of quantity supplied to changes in price. It can be positive or negative depending on the nature of the supply curve. In the long run, supply can become more elastic due to factors such as the entry of new firms or the development of new technology, but in the short run, supply is usually less elastic.

The Price Elasticity of Supply