The supply curve will be more elastic if
A)the good has few substitutes
B)the time the producer has to adjust is long
C)the time frame for adjusting to price changes is short
D)demand is elastic
E)demand is inelastic

Question

Quizplus · Accepted Answer

The elasticity of supply is influenced by the time producers have to adjust to changes in price. When producers have a longer time horizon to adjust to changes in price, they are more likely to be able to increase or decrease production in response to those changes, making supply more elastic. Other factors, such as the availability of substitutes and the elasticity of demand, can also influence the elasticity of supply, but B is the best choice in this case.

The Supply Curve Will Be More Elastic If