Relative to a mobile factor of production, economic theory suggests that the price elasticity of supply for a highly immobile factor of production (for example, land) will be
A) more elastic.
B) less elastic.
C) of unitary elasticity.
D) this is a trick question; the price elasticity of supply for factors of production is not affected by factor mobility.

Question

Quizplus · Accepted Answer

The price elasticity of supply for a highly immobile factor of production, like land, is less elastic because it cannot be easily increased or decreased in response to price changes.

Relative to a Mobile Factor of Production, Economic Theory Suggests