Price Elasticity of Supply of a good is 2. It shows that:A. Inealstic – InterviewSolution

1.	Price Elasticity of Supply of a good is 2. It shows that:A. Inealstic supplyB. less elastic supplyC. unitary elastic supplyD. highly elastic supply
Answer» Correct Answer - D when price elasticity of supply is greater than 1, then the supply is highly elastic. our correct answer is (D).

Discussion

No Comment Found

Related InterviewSolutions

The supply curve of a good shifts to the right when prices of other goods rise.
In case of __ supply falls at the same price.A. decrease in supplyB. contraction in supply.C. increase in supplyD. expansion in supply
Which of the following falls in the category of goods that do not follow the law of supply?(A) Rare goods(B) Precious goods(C) Perishable goods(D) Both (A) and (C)
If nothing is supplied event at a marginally reduced price, what will be the elasticity of supply ?
There are three different supply curves passing through the origin. Curve A makes an angle of `60^(@)` Curve B makes an angle of `45^(@)` and curve C makes an angle of 30°. What will be the price elasticily of curves A, B and C?
How does an increase in the price of the an input of affect the supply curve of firm ?
How does an icreasae in the price of an input affect the market supply curve ?
The following supply curves shits from SS to `S_(1)S_(1)` due to: A. Decrease in TaxesB. Upgradation of techologyC. Fall in the price of inputsD. All of the above
Distinguish : Stock and Supply.
Why is the law of supply not applicable to rare articles?