Question

if a supply curve for a good is price elastic, then
a. the quantity supplied is sensitive to changes in the price of that good.
b. the quantity supplied is insensitive to changes in the price of that good.
c. the quantity demanded is sensitive to changes in the price of that good.
d. the quantity demanded is insensitive to changes in the price of that good.
e. none of the above.

Explanation:

Price elasticity of supply measures how responsive the quantity supplied of a good is to changes in its price. When supply is price elastic, it means the quantity supplied has a strong response to price changes. Options c and d refer to quantity demanded, which relates to demand elasticity, not supply elasticity. Option b describes inelastic supply.

Answer:

a. the quantity supplied is sensitive to changes in the price of that good.