Asked by
Denise Norris
on Dec 11, 2024
Verified
The price elasticity of supply
A) will be positive when supply is elastic and negative when it is inelastic.
B) will be negative when supply is elastic and positive when it is inelastic.
C) will always be positive.
D) will be positive when demand for the good is inelastic.
E) will be positive when demand for the good is elastic.
Price Elasticity
A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.
Supply
The total quantity of a product or service that is available for purchase at a given price and time.
- Outline the factors that dictate the elasticity of supply and its divergence in behavior from short-term to long-term scenarios.
Verified Answer
PG
Learning Objectives
- Outline the factors that dictate the elasticity of supply and its divergence in behavior from short-term to long-term scenarios.