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The price elasticity of supply measures how:

1. responsive is the quantity supplied of Y to changes in the price of X.

2. responsive is the quantity supplied to a change in incomes.

3. responsive is the quantity supplied of X to changes in the price of X.

4. easily labor and capital can be substituted for one another in the production process.

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Sonal Bahl
Sonal BahlLv10
28 Sep 2020

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Related questions

Match the following terms with their proper definitions.
Potential Matches:
1 : measures the responsiveness of the quantity supplied of a good to changes in the price of that good
2 : a formula that measures the responsiveness along a specific section (arc) of a supply or demand curve and measures the "average" price elasticity between two points on the curve.
3 : measures the responsiveness of the quantity supplied of a good to changes in the price of the related good
Answer
: Own-Price Elasticity of Supply
: Cross-Price Elasticity of Supply
: Arc Elasticity

interval (or arc) elasticity

cross-price elasticity

price elasticity of demand

elastic demand

income elasticity

inelastic demand

inframarginal units

marginal revenue

point elasticity

price effect

quantity effect

total revenue

unitary elastic demand

1. __________________ A measure of consumers’ sensitivity or responsiveness to changes in the price of a good or service.

2. ___________________ When the percentage change in price (in absolute value) is more than the percentage change in quantity demanded (in absolute value).

3. ___________________ When the percentage change in quantity demanded (in absolute value) is more than the percentage change in price (in absolute value).

4. ___________________ When the percentage change in quantity demanded (in absolute value) is just equal to the percentage change in price (in absolute value).

5. ___________________ Total amount paid to a producer for a good or service P * Q.

6. ___________________ The effect on total revenue of a change in price, holding quantity constant.

7. ___________________ The effect on total revenue of a change in quantity, holding price constant.

8. ___________________ An elasticity calculated over an interval of a demand curve or demand schedule.

9. ___________________ Elasticity at a specific price or point on a demand curve.

10. ___________________ A measure of how responsive quantity demanded is to a change in income, all other things constant.

11. ___________________ A measure showing how responsive the quantity demanded of one good is to changes in the price of another good, other factors constant.

12. ___________________ The additional revenue received by producing and selling one more unit of output.

13. ___________________ Units of output that could have been sold at a higher price had the firm not lowered its price to sell additional (marginal) units.

The price elasticity of supply measures how

a. the response of a supply shift to changes in technology

b. how much supply changes when the prices of inputs change

c. the responsiveness of quantity supplied to changes in prices

d. the response of a supply shift to changes in technology and to changes in prices

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