A price elasticity of supply of 0.5 indicates

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    a slower increase in the marginal cost of production compared to a market with a price elasticity of supply of 1.5.
     a 0.5% fall in the quantity supplied for a 1% increase in price.
     a more rapid increase in the marginal cost of production compared to a market with a price elasticity of supply of 1.5.
     a 1% increase in the quantity supplied for a 0.5% increase in price.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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a more rapid increase in the marginal cost of production compared to a market with a price elasticity of supply of 1.5.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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