The coefficient of the price elasticity of supply is always_____________

  • A Constant
  • B Zero
  • C Positive
  • D Negative

The correct answer is C. Positive

The coefficient of the price elasticity of supply is always Positive.

This is because the price elasticity of supply measures the responsiveness of the quantity supplied to a change in price.

If the price of a good increases, suppliers are likely to want to supply more of it, hence a positive relationship.

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