Economics • Economic BasicsEasy
Which of the following describes 'Price Elasticity of Supply'?
A. The responsiveness of quantity supplied to a change in price✓ Correct Answer
B. The change in total revenue when price changes
C. The responsiveness of consumer demand to income changes
D. The relationship between production cost and output volume
💡 Solution & Explanation
Price elasticity of supply measures the degree of responsiveness of the quantity supplied of a commodity to a proportionate change in its price. Other options describe consumer demand responsiveness or production cost relationships rather than supply dynamics.
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