Price Elasticity of Supply: Quantity Increase vs. Price Increase

If the price elasticity of supply of a product is elastic and the product's price increases, then the percentage increase in the quantity of the product's supply should be

A. greater than the percentage increase in price

Explanation:

When the price elasticity of supply is elastic, it means that the quantity supplied is very responsive to changes in price. In other words, a small change in price leads to a relatively larger change in the quantity supplied.

Therefore, if the price increases, the percentage increase in the quantity supplied will be greater than the percentage increase in price. This is because producers are incentivized to supply more of the product as the price rises, leading to a larger proportional change in quantity supplied.