question archive What concept measures how much the quantity supplied responds to changes in price? a
What concept measures how much the quantity supplied responds to changes in price? a
Subject:EconomicsPrice:2.88 Bought3
What concept measures how much the quantity supplied responds to changes in price?
a. Cross-price elasticity of demand
b. Value elasticity of supply
c. Price elasticity of supply
d. Income elasticity of demand
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Ans: Price elasticity of supply
Price elasticity of supply is defined as the degree of responsiveness of quantity supplied of a good due to a change in price of the good. The formula to calculate Price elasticity of supply is:
Price elasticity of supply = Percentage change in quantity supplied / Percentage change in price of the good.
