When will a change in supply influence the price more significantly than the quantity supplied?

Show Answers

The supply's price elasticity equals 3The supply's price elasticity equals 0.2The supply's price elasticity equals 2The supply's price elasticity is infinite

Explanation

When the price elasticity of supply is high (such as 3), a shift in supply tends to cause a larger change in price compared to quantity. Lower elasticities indicate quantity changes dominate price changes.