We generally expect the price elasticity of supply to be
A) zero.
B) negative.
C) positive.
D) between -1 and +1.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of quantity supplied to changes in price. If quantity supplied increases significantly in response to a small increase in price, then supply is said to be elastic and the elasticity of supply is positive. Therefore, we generally expect the price elasticity of supply to be positive.

We Generally Expect the Price Elasticity of Supply to Be