The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor)are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A)the supply curve for cupcakes is downward sloping.
B)the elasticity of supply of cupcakes is relatively high.
C)the elasticity of supply of cupcakes is relatively low.
D)cupcakes are a normal good.

Question

Quizplus · Accepted Answer

If the production of a good requires inputs that are also useful in the production of other goods, then the elasticity of supply for that good will be relatively high.

The Inputs Used to Produce Cupcakes (E