Question on: JAMB Economics - 2012
The cost elasticity of supply is a useful instrument for measuring
A
profit
B
productivity
C
national income
D
price index
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Correct Option: B
The cost elasticity of supply is not a standard economic concept. The question likely intends to ask about the price elasticity of supply. This measures the responsiveness of the quantity supplied of a good or service to a change in its price.
- Price Elasticity of Supply: This is a measure of how much the quantity supplied of a good or service changes in response to a change in its price.
- Cost of Production: Related to supply but not directly measured by elasticity.
- Profit, Productivity, and National Income are not what elasticity of supply measures.
- Price index is not relevant to supply elasticity.
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