Suppose the Value of the Price Elasticity of Supply Is

Multiple Choice

Suppose the value of the price elasticity of supply is 4.What does this mean?

A) A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
B) A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent.
C) A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent.
D) For every $1 increase in price, quantity supplied increases by 4 units.