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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q20) Which of the following statements about price elasticity of supply is correct?

Try again

Try again

Correct

Correct

Solution:
Option (a) states that price elasticity of supply is a measure of how much the quantity supplied of a good responds to a change in the price of that good.
Option (b) states that price elasticity of supply is computed as the percentage change in quantity supplied divided by the percentage change in price.
Option (c) states that price elasticity of supply in the long run would be different from that of the short run.
Therefore, all three statements are correct.
Correct option is (d)