Question

The measure of the way quantity supplied reacts to a change in price is _____.

elasticity of supply

supply

consumer demand

quantity supplied

Answer 1

The answer, I believe, is consumer demand. Think of it like this: when an item goes on sale, the amount of the item there will go down fast because everyone is buying it.

I hope this helps you, and have a nice day. :)

Answer 2

The correct answer is: "elasticity of supply"

The elasticity of supply measures the percentage change in the quantity supplied cause by a certain price variation. According to the law of supply, price and quantity supply are directly related hence, when price increases so does the quantity supplied.

When there is a % increase in the price of the product, if the quantity supplied increases in a larger proportion, then the supply curve is elastic. Meanwhile, if the % change in the quantity supplied is smaller than the price variation then the supply curve is inelastic.