The supply of a good is more price elastic,
A)the fewer alternatives there are to producing the good in question
B)the more broadly the market for the good is defined
C)the longer the time horizon over which it is measured
D)the higher the cost of production
E)the more elastic the demand for that good.

Question

Quizplus · Accepted Answer

Price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price. The longer the time horizon, the more time producers have to adjust their production levels in response to price changes. Therefore, supply is more price elastic over a longer time horizon.

The Supply of a Good Is More Price Elastic