The price elasticity of supply is a measure of how
A)long it takes for producers to change technology.
B)sensitive producers are to a change in technology.
C)long it takes for producers to change their prices.
D)sensitive producers are to a change in input prices.
E)sensitive producers are to a change in output price.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures the responsiveness of producers to a change in the price of the output. Option E reflects this definition, as it indicates that the measure is related to a change in output price. Options A, B, C, and D are all incorrect as they do not measure the responsiveness of producers to a change in the price of the output.

The Price Elasticity of Supply Is a Measure of How