What Is Meant by the Term Supply Elasticity

question 13

Multiple Choice

What is meant by the term supply elasticity?

• A)The responsiveness of the change in the quantity demanded to a change in price of a product.
• B)The change in quantity supplied as a percentage of the change in the quantity demanded.
• C)The change in the price of a product as a result of a change in the quantity supplied.
• D)The responsiveness of a change in the quantity supplied of a product as a result of a change in price.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Producer Surplus

The difference between the amount producers are willing to sell their goods for and the actual amount they receive due to higher market prices.

Consumer Surplus

The gap highlighting the difference between the sum consumers intend to pay and what they actually fork out for a good or service.

Supply Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that suppliers are willing to sell.