Question

Usually, price elasticities of supply areA) positive, because higher prices yield larger quantities supplied.B) considered short-run adjustments due to supply constraints. C) ordinarily a negative number based on the law of supply.D) an inverse relationship between price and quantity supplied.

Answer 1

Answer:

A) Positive, because higher prices yield larger quantities supplied.

Explanation:

The correct answer to the question is A) Positive, because higher prices yield larger quantities supplied. The price elasticity of supply determines the change in price as a response to the change in supply of the good or service supplied. This is usually calculated in a figure that determines that if price increases what will be the impact on its supply, which usually is a positive figure.