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AP®︎/College Microeconomics

Lesson 4: Price elasticity of supply

Price Elasticity of Supply and its Determinants

AP.MICRO: MKT‑3 (EU), MKT‑3.E (LO), MKT‑3.E.7 (EK), MKT‑3.E.8 (EK), MKT‑3.E.9 (EK)

Quinn's Cupcake shop has a price elasticity of supply of 3, point, 75.

Which of the following statements is the correct interpretation of this price elasticity of supply?

(Choice A)
For every 1, percent increase in price, Quinn will be willing to sell 3, point, 75 more cupcakes
(Choice B)
For every dollar sign, 3, point, 75 increase in price, Quinn will be willing to sell 1, percent more cupcakes
(Choice C)
For every dollar sign, 3, point, 75 increase in price, Quinn will be willing to sell 1 more cupcake
(Choice D)
For every 3, point, 75, percent increase in price, Quinn is willing to sell 1 more cupcake
(Choice E)
For every 1, percent increase in price, Quinn will be willing to sell 3, point, 75, percent more cupcakes

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