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Question
Choose the correct term for the given definition.
The ratio between the percentage change in supply to a percentage change in price.
Options
Law of demand
Law of supply
Elasticity of demand
Elasticity of supply
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Solution
Elasticity of supply
Explanation:
The elasticity of supply is the term used to describe the ratio between the percentage change in the quantity supplied and the percentage change in price. It measures how responsive a good's supply is to price changes.
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