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1. Introduction to Macroeconomics1h 57m
2. Introductory Economic Models59m
3. Supply and Demand3h 43m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 40m
6. Introduction to Taxes1h 25m
7. Externalities1h 3m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. Introducing Economic Concepts49m
11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)1h 37m
12. Unemployment and Inflation1h 15m
13. Productivity and Economic Growth1h 17m
14. The Financial System1h 37m
15. Income and Consumption52m
16. Deriving the Aggregate Expenditures Model1h 22m
17. Aggregate Demand and Aggregate Supply Analysis1h 18m
18. The Monetary System1h 1m
19. Monetary Policy1h 32m
20. Fiscal Policy1h 0m
21. Revisiting Inflation, Unemployment, and Policy46m
22. Balance of Payments30m
23. Exchange Rates1h 16m
24. Macroeconomic Schools of Thought40m
25. Dynamic AD/AS Model35m
26. Special Topics11m

4. Elasticity

Price Elasticity of Supply

Macroeconomics

4. Elasticity

Price Elasticity of Supply

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Multiple Choice

The price elasticity of supply measures the responsiveness of:

Quantity supplied to changes in price

Quantity demanded to changes in supply

Quantity supplied to changes in income

Quantity supplied to changes in demand

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Verified step by step guidance

Understand the concept of price elasticity of supply, which measures how much the quantity supplied of a good responds to a change in the price of that good.

Recall that elasticity is a ratio of the percentage change in quantity supplied to the percentage change in price.

Identify the correct relationship: Price elasticity of supply specifically relates to changes in quantity supplied as a result of changes in price, not income or demand.

Eliminate incorrect options by recognizing that elasticity of supply does not measure changes in quantity demanded or changes due to income or demand shifts.

Conclude that the correct answer is the responsiveness of quantity supplied to changes in price, as this aligns with the definition of price elasticity of supply.