Question

Suppose the value of the price elasticity of supply is 4. what does this mean? a 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent. a 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent. for every $1 increase in price, quantity supplied increases by 4 units. a 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.

Answer 1

A. 1% increase in the price of the good causes the supply curve to shift upward by 4 percent.