Answer
Price elasticity of supply = $\frac{\text{percentage change in quantity supplied}}{\text{percentage change in price}}$
Price elasticity of supply measures the responsiveness of the quantity supplied of a good to changes in its price.
Work Step by Step
Question is a definition question.
Price elasticity of supply = $\frac{\text{percentage change in quantity supplied}}{\text{percentage change in price}}$
Do note that to calculate the price elasticity of supply percentage changes must be used.
Price elasticity of supply measures the responsiveness of the quantity supplied of a good to changes in its price. A good with elastic supply will have a price elasticity of supply of greater than one while a good with inelastic supply will have a price elasticity of supply of less than zero.
