The price elasticity of supply measures how rev: a. easily labor and capital can be substituted for one another in the production process. b. responsive the quantity supplied of x is to changes in the price of x. c. responsive the quantity supplied of y is to changes in the price of x. d. responsive quantity supplied is to a change in incomes.

Option (b) is correct.

Explanation:

The price elasticity of supply refers to the responsiveness of the quantity supplied with any change in the price level of the product.

The price elasticity of supply is calculated as follows:

= (Percentage change in quantity supplied ÷ Percentage change in price level)

The price elasticity of supply is zero, it means that the quantity supplied remains the same at any price level.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

it is d i just took the test