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Which of these is the extent of a change in quantity supplied because of a change in the market price of a product?

A) Price elasticity of supply
B) Change in supply
C) Change in quantity demanded
D) Change in demand
E) Change in quantity supplied
O) Price elasticity of demand

User Leiby
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1 Answer

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Final answer:

The extent of a change in quantity supplied due to a change in market price is measured by the price elasticity of supply, which is calculated as the percentage change in quantity supplied divided by the percentage change in price.

Step-by-step explanation:

The extent of a change in quantity supplied because of a change in the market price of a product is known as the price elasticity of supply. This dimension is a ratio that measures how much the quantity supplied of a good or service responds to a change in its price. A higher elasticity indicates that the quantity supplied is more responsive to price changes, while a lower elasticity means it’s less responsive. Specifically, the price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.

User Gmatht
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