Which of the following statement/s about the Price Elasticity of supply is/are not true ? A. It is the…
Price Elasticity of Supply is defined as the percentage change in quantity supplied divided by the percentage change in market price (\(e_s = \frac{\%\Delta Q_s}{\%\Delta…
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Which of the following statement/s about the Price Elasticity of supply is/are not true ?
A. It is the responsiveness of the price of a good to changes in its quantity supplied.
B. It equals the ratio of percentage change in the price to percentage change in quantity supplied.
C. It is the percentage change in quantity supplied due to percent change in the market price of a good.
Answer and explanation
Correct answer B
Price Elasticity of Supply is defined as the percentage change in quantity supplied divided by the percentage change in market price (, Statement C is true). Statements A and B invert the numerator and denominator and are therefore NOT true.
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RPSC School Lecturer (School Education)