Q51
Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its
A.
Demand
B.
Price
AnswerC.
Cost of production
D.
State of technology
Answer: Option B
Solution
Answer: Option B
Solution:
Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its Price. Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by percentage change in price.