ECON: Elasticity of Supply

If the price doubles and the quantity supplied also​ doubles, the price elasticity of supply for the good is

1

Which of the following explains why supply is more elastic as more time​ passes?

It is difficult or impossible to increase the quantity produced in a short period of time.

What is measured by the price elasticity of​ supply?

The price elasticity of supply measures how responsive producers are to changes in the price of a product.

When the price of a textbook is​ $95, the quantity of textbooks supplied is 90 million a year and when the price rises to​ $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is

elastic

If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30​ percent, then supply is

elastic and the elasticity of supply equals 1.5.

Because the price elasticity of supply for jumbo jets is​ 0.35, the supply of jumbo jets is

inelastic

If wheat can be produced at a constant opportunity​ cost, then the supply of wheat is

perfectly elastic

The price elasticity of supply equals the percentage change in the

quantity supplied divided by the percentage change in price.