Question

The larger the coefficient of price elasticity of demand for a product, the: larger the resulting price change for an increase in supply. more rapid the rate at which the marginal utility of that product diminishes. less competitive will be the industry supplying that product. smaller the resulting price change for an increase in supply.

Answer 1

Answer:

The correct answer is smaller the resulting price change for increase or rise in supply.

Explanation:

Coefficient of price elasticity is the one which is defined as measuring or evaluating the elasticity of price of the demand in coefficient. In retaliation to the change or variation in the price, demand for the product could be inelastic, elastic, perfectly inelastic or the perfectly elastic grounded on the coefficient.

When the coefficient of price elasticity of demand for the product is larger, then it will result in the smaller price change for the rise or increase in the supply.