The Price Elasticity of Supply Measures

question 86

Multiple Choice

The price elasticity of supply measures

• A) the percentage change in supply from a percentage change in demand.
• B) the extent to which the quantity supplied of a good changes when the price of a good changes, other things remaining the same.
• C) the slope of the supply curve.
• D) how the equilibrium price changes in response to a change in the equilibrium quantity supplied.
• E) Both answers B and C are correct.

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Definitions:

Thomas E. Dewey

An American politician who served as the Governor of New York and was the Republican candidate for the U.S. Presidency in 1944 and 1948, famously losing the latter in a close race to Harry S. Truman.

New York Governor

The chief executive of the State of New York, responsible for enforcing state laws and overseeing the operation of the state government.

Colonialism

The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Franklin D Roosevelt

The 32nd President of the United States, who served four terms from 1933 to 1945 and led the country during the Great Depression and World War II.