Explain what it means if a certain good has a price elasticity of supply of 3.

A price elasticity of supply of three means that the quantity demanded will increase by three units, as a result of a one unit increase in its price. Alternatively, it means that the quantity supplied will increase by three percent as a result of a one percent increase in its price. In other words, supply is said to be price elastic because a small change in price causes a large increase in quantity supplied.