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30 March, 23:42

The price elasticity of supply measures how rev:a. easily labor and capital can be substituted for one another in the production process. b. responsive the quantity supplied of X is to changes in the price of X. c. responsive the quantity supplied of Y is to changes in the price of X. d. responsive quantity supplied is to a change in incomes.

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  1. 31 March, 00:03
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    Option (b) is correct.

    Explanation:

    The price elasticity of supply refers to the responsiveness of the quantity supplied with any change in the price level of the product.

    The price elasticity of supply is calculated as follows:

    = (Percentage change in quantity supplied : Percentage change in price level)

    The price elasticity of supply is zero, it means that the quantity supplied remains the same at any price level.
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