alleryElasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its:
Aconsumer demand
Bcost of production
Cstate of technology
Down price
Answer & Solution
Correct answer: D. own price
1. Elasticity of supply is the responsiveness of quantity supplied to a price change.
2. The price in question is the good's own price.
3. Demand, cost and technology can influence supply, but elasticity of supply is defined against own price.
4. The answer is own price.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit III "Supply", p.5_
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