As producers have more time to adjust to a price change, price elasticity of supply
A)increases
B)decreases
C)remains the same
D)rises and then falls
E)falls and then rises

Question

Quizplus · Accepted Answer

As producers have more time to adjust to a price change, they can increase their production capacity, switch production to more profitable products, or invest in more efficient technologies, which makes it easier for them to respond to changes in price. This increased ability to respond to price changes leads to a higher price elasticity of supply.

As Producers Have More Time to Adjust to a Price