Price elasticity of supply of a good is 2. It shows that :

1.	Price elasticity of supply of a good is 2. It shows that :
Answer» When price falls by `1%` supply RISES by `2%`. When supply falls by `1%` ,price rises by `2%`. When price rises by `1%`, supply rises by `2%`. When supply rises by `1%` , price rises by `2%`. Answer :C

Discussion