Which of the following economic concepts defines the responsiveness of supply of a good or service to a change in its price?

💡 Solution & Explanation

Price elasticity of supply measures the degree of responsiveness of the quantity supplied of a commodity to a change in its price, reflecting producers' flexibility. Other choices measure entirely different economic phenomena, such as income elasticity tracking demand shifts due to wealth changes and cross-price elasticity evaluating substitute or complementary goods. Supply tends to be more elastic in the long run than in the short run.