Which term describes the extent to which supply responds to price changes?

The term that describes the extent to which supply responds to price changes is Elasticity of Supply. This concept measures how much the quantity supplied of a good or service changes in response to a change in its price. A more elastic supply indicates that producers can increase production significantly when prices rise, while an inelastic supply indicates that production levels do not change much with price fluctuations. Understanding elasticity is crucial for businesses and economists as it helps assess how supply levels can be adjusted based on market conditions and pricing strategies.

The other options do not define this relationship directly. The Supply Curve represents the graphical representation of the relationship between price and quantity supplied but does not quantify the extent of responsiveness. The Demand Curve focuses on the relationship between price and quantity demanded, and Market Demand reflects the total demand from all consumers in the market rather than supply responsiveness.