Answer:
The correct answer is letter "B": how responsive quantity supplied is to a change in price.
Explanation:
Price elasticity of supply describes the relationship between changes in quantity supplied and prices. It is calculated by dividing the percentage change in quantity supplied by the percentage change in price. If the result is equal to or greater than 1, the supply is elastic. This means in front of relatively small changes in price, major changes in quantity supplied will occur.
If the result is a figure lower than 1, the supply is inelastic which mear changes in prices will not affect the quantity supplied.
