If the price elasticity of supply of a good is elastic and the good price increases,then the increase in the good's supply should be
A)greater than the increase in price.
B)less than the increase in price.
C)the same as the increase in price.
D)Cannot be determined from this information

Question

Quizplus · Accepted Answer

If the price elasticity of supply is elastic, then a small increase in price will lead to a relatively larger increase in the quantity supplied. Therefore, if the price of the good increases, the increase in the supply should be greater than the increase in price.

If the Price Elasticity of Supply of a Good Is