Price elasticity of supply is when the elasticity of either supply is greater than one, indicating a high responsiveness of quantity demanded or supplied to changes in price.Question 1Select one:a.Trueb.False

The price elasticity of supply is defined as:(a) % change in quantity supplied divided by the % change in price;(b) % change in price divided by the % change in quantity supplied;(c) % change in quantity supplied divided by the % change in income;(d) % change in income divided by the % change in quantity supplied

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse

What is price elasticity of demand?Multiple ChoiceThe responsiveness of price to a change in the quantity demanded.The responsiveness of quantity demanded to a change in price.Price divided by quantity demanded.Price multiplied by quantity demanded.

The factors that affect the price elasticity of supply include: Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. check all that applyrelative need and relative cost.time needed to adjust to changes in price.the availability of inputs.the flexibility of the production process.degree of necessity.

If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be elastic.Question 5AnswerTrueFalse