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OverLord2011 [107]
3 years ago
7

The law of supply suggests that the price elasticity of supply is

Biology
2 answers:
enot [183]3 years ago
7 0

Answer:

a. positive.

Explanation:

  • The price of elasticity is a method to show the flexibility or the elasticity of the quantity of a good or the service that changes in its price an is represented in a numerical form and defined as the percentage change in the quantity of the price.
  • When elasticity is less than 1 the supply of the good can be said to as inelastic an of its greater than one it's elastic. As factor constant increase so does the increase of the quantity supplied.
marin [14]3 years ago
3 0

Answer:

<h2>In Microeconomics,the law of supply states the direct or positive relationship between quantity supplied of any product or service and any change in its market price.Hence,based on law of supply,price elasticity of supply is always positive.</h2>

Explanation:

  • Price elasticity of supply measures the percentage or proportionate change in the quantity supplied of any product or service in response to a certain percentage or proportionate change in its market price.
  • Based on the law of supply,both the quantity supplied of any product or service by the sellers or producers in the market and its market price move in the same direction.Hence,certain increase in market price of any product or service will induce a specific percentage or proportionate increase in its quantity supplied by sellers or producers as well and vise versa.
  • Therefore,based on the economic relationship between the quantity supplied of any good or service and its market price as established by the law of supply,the price elasticity of supply will always be positive.
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