Asked by Natalie Vande Linde on Jul 21, 2024
Verified
In output markets, the elasticity of supply tends to be
A) negative.
B) zero.
C) positive.
D) decreasing at an increasing rate.
Elasticity of Supply
The measure of how much the quantity supplied of a good changes in response to a change in price.
- Understand elasticity of supply and its relevance in market dynamics.
Verified Answer
JO
jonah olivanJul 25, 2024
Final Answer :
C
Explanation :
In output markets, the elasticity of supply is generally positive because as prices increase, producers are willing to supply more of the good, reflecting a direct relationship between price and quantity supplied.
Learning Objectives
- Understand elasticity of supply and its relevance in market dynamics.