If a supply curve for a good is price elastic, then a. the quantity supplied is sensitive to changes in the price of that good b. the quantity supplied is insensitive to changes in the price of that good c. the quantity demanded is sensitive to changes in the price of that good d. the quantity demanded is insensitive to changes in the price of that good e. none of the answer choices

The **price elasticity of supply** measures how responsive the quantity supplied of a good is to a change in its price. - **Elastic Supply**: If the supply is price elastic, it means that producers can increase or decrease the quantity supplied significantly in response to price changes. This typically occurs when producers have the flexibility to adjust production levels quickly. Given this understanding: - **Option a**: *The quantity supplied is sensitive to changes in the price of that good.* This accurately describes an elastic supply curve. - **Option b**: *The quantity supplied is insensitive to changes in the price of that good.* This describes inelastic supply, which is the opposite of what is stated in the question. - **Options c and d**: These refer to the quantity demanded, not supplied, and are therefore irrelevant to the question about the supply curve. - **Option e**: Since option a is correct, this option is not applicable. **Answer:** a. the quantity supplied is sensitive to changes in the price of that good