The coefficient of the price elasticity of supplyis always
Answer Details
The coefficient of price elasticity of supply measures the responsiveness of quantity supplied to a change in the price of a commodity. It can be calculated by dividing the percentage change in quantity supplied by the percentage change in price. Since price and quantity supplied have a direct relationship, an increase in price will result in an increase in quantity supplied and vice versa. Therefore, the coefficient of price elasticity of supply is always positive.