The Price Elasticity of Supply Tells Us

question 101

Multiple Choice

The price elasticity of supply tells us:

• A) the percentage change in quantity supplied when the price of the good changes by one percent.
• B) in which direction the quantity supplied changes as we move along the supply curve.
• C) how quickly the supply will respond to a change in price.
• D) the magnitude of shift in the supply curve in response to a change in price.

---

Definitions:

Afraid

A feeling of fear or anxiety about a possible or imminent situation or event.

Under Stress

Experiencing physical or emotional tension resulting from challenging or demanding circumstances.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration; it plays a key role in the body's stress response.

Adrenal Gland

A pair of endocrine glands located above the kidneys that produce hormones such as adrenaline and cortisol.