Asked by Ryan Matthew McCarthy on May 21, 2024
Verified
The price elasticity of supply measures how
A) easily labor and capital can be substituted for one another in the production process.
B) responsive the quantity supplied of X is to changes in the price of X.
C) responsive the quantity supplied of Y is to changes in the price of X.
D) responsive quantity supplied is to a change in incomes.
Price Elasticity
An indicator of consumer sensitivity to price fluctuations, represented by the extent to which the demand for a product adjusts in response to variations in its price.
Quantity Supplied
The amount of a good or service that producers are willing and able to sell at a given price level during a specified time period.
Production Process
The sequence of actions or steps involved in producing a good or service, encompassing all activities from raw material to finished product.
- Understand the concept of supply elasticity and how it is measured.
Verified Answer
KC
Karen CavadiaMay 25, 2024
Final Answer :
B
Explanation :
The price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price, making option B the correct answer.
Learning Objectives
- Understand the concept of supply elasticity and how it is measured.