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The price elasticity of supply measures how much Group of answer choices the quantity supplied responds...

The price elasticity of supply measures how much Group of answer choices the quantity supplied responds to changes in input prices. the quantity supplied responds to changes in the price of the good. the price of the good responds to changes in supply. sellers respond to changes in technology.

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Answer #1

Ans. Option b

Price elasticity of supply = %change in quantity supplied/ %change in own price of the good

Thus, price elasticity of supply is the %change in quantity supplied of the good due to a 1% change in own price if the good.

Usually, price elasticity of supply is positive as increase in price increases profits of the sellers, so, they increase supply to earn more.

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