Question

The ratio of the percentage change in the quantity supplied of a good/service/e-good/e-service to a given percentage change in its price, or cost, is known as the price elasticity of supply. True False

Answer 1

The answer is true. The percentage change in quantity supplied as a result of a specific percentage change in the commodity's own price is known as price elasticity of supply.

It is determined by dividing the percentage change in the quantity delivered by the percentage change in the commodity's price. These factors impact the price elasticity of supply: Number of producers: simplicity of entrance. Spare capacity: If there is a change in demand, it is simple to expand production. Switching is simple when production of the good may be changed, making the supply more elastic. The availability of non-essential items like soft drinks.

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