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21 October, 20:53

The price elasticity of supply : a. is the slope of the supply curve. b. is the percentage change in quantity supplied divided by the percentage change in price. c. does not vary between the long and the short run. d. is always negative.

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  1. 21 October, 21:27
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    b. is the percentage change in quantity supplied divided by the percentage change in price.

    Explanation:

    Price elasticity of supply measures the degree of responsiveness of quantity demanded to price. It is a ratio of the percentage change in quantity supplied to percentage change in price.

    Elasticity of supply can be elastic meaning an increase in price results in increase in demand.

    It can also be inelastic meaning increase in price does not lead to a reasonable increase in supply.
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