The price elasticity of supply is a measure of the extent to which the quantity supplied of a good changes when the
A) cost of producing the product increases.
B) quantity of the good demanded increases.
C) supply increases.
D) price changes.
E) number of firms supplying the good changes.

Question

Quizplus · Accepted Answer

Price elasticity of supply measures the responsiveness of the quantity supplied to changes in the price of a good or service. Therefore, when the price changes, the quantity supplied changes, and the price elasticity of supply can be determined. A, B, C, and E may affect the supply of a good or service, but they are not specifically measurements of price elasticity of supply.

The Price Elasticity of Supply Is a Measure of the Extent