ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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quantity supplied to changes in price.
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quantity demanded to changes in supply.
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quantity supplied to changes in income.
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quantity supplied to changes in demand.
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Detailed explanation-1: -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-2: -Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by percentage change in price.
Detailed explanation-3: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.
Detailed explanation-4: -Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises.
Detailed explanation-5: -Definition of Price Elasticity of Supply. The price elasticity of supply is the measure of the responsiveness in quantity supplied to a change in price for a specific good.