The coefficient ofprice elasticity of supply of a good is 3 . It is known as
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Answer:show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.
The elasticity is represented in numerical form, and is defined as the percentage change in the quantity supplied divided by the percentage change in price.
When the elasticity is less than one, the supply of the good can be described as inelastic; when it is greater than one, the supply can be described as elastic.[1] An elasticity of zero indicates that quantity supplied does not respond to a price change: the good is "fixed" in supply. Such goods often have no labor component or are not produced, limiting the short run prospects of expansion. If the elasticity is exactly one, the good is said to be unit-elastic.
The quantity of goods supplied can, in the short term, be different from the amount produced, as manufacturers will have stocks which they can build up or run down.
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