ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
how much the price of the good responds to changes in taxes.
|
|
|
how much the quantity supplied responds to changes in the price of the good.
|
|
|
how much the quantity supplied responds to changes in resource prices.
|
|
|
how much sellers respond to advances in technology.
|
Detailed explanation-1: -The price elasticity of supply is a measure of how sensitive the quantity supplied of a good is to changes in price. It is calculated as the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-2: -The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-3: -The price elasticity of supply measures the responsiveness of quantity supplied to changes in price. It is the percentage change in quantity supplied divided by the percentage change in price. It is usually positive.
Detailed explanation-4: -There are numerous factors that directly impact the elasticity of supply for a good including stock, time period, availability of substitutes, and spare capacity. The state of these factors for a particular good will determine if the price elasticity of supply is elastic or inelastic in regards to a change in price.
Detailed explanation-5: -Price elasticity of supply is the percentage change in the quantity of a good or service supplied divided by the percentage change in the price. Since this elasticity is measured along the supply curve, the law of supply holds, and thus price elasticities of supply are always positive numbers.