For most items, we find the price elasticity of supply will be
A) negative.
B) positive.
C) invisible.
D) inverse.

Question

Quizplus · Accepted Answer

Price elasticity of supply measures the responsiveness of supply to a change in price. Typically, if the producer can respond quickly to price changes, the supply will be more elastic, meaning that the quantity supplied will change significantly in response to price. Therefore, the price elasticity of supply is generally positive.

For Most Items, We Find the Price Elasticity of Supply