Usually, price elasticities of supply areA) positive, because higher prices yield larger quantities supplied. B) considered short-run adjustments due to supply constraints. C) ordinarily a negative number based on the law of supply. D) an inverse relationship between price and quantity supplied.

Question

Business

Kira Levy

30 March, 08:16

Usually, price elasticities of supply areA) positive, because higher prices yield larger quantities supplied. B) considered short-run adjustments due to supply constraints. C) ordinarily a negative number based on the law of supply. D) an inverse relationship between price and quantity supplied.

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Answers (1)

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Khloe Santos · Answer 1

A) Positive, because higher prices yield larger quantities supplied.

Explanation:

The correct answer to the question is A) Positive, because higher prices yield larger quantities supplied. The price elasticity of supply determines the change in price as a response to the change in supply of the good or service supplied. This is usually calculated in a figure that determines that if price increases what will be the impact on its supply, which usually is a positive figure.