When production of a good can be expanded without significantly increasing the overall demand for its inputs:
A) supply for this good will tend to be more inelastic.
B) supply for this good will tend to be more elastic.
C) price for the good will be constant.
D) the elasticity of supply of the product will equal the elasticity of supply of the inputs.

Question

Quizplus · Accepted Answer

When the production of a good can be expanded without significantly increasing the overall demand for its inputs, this indicates that the inputs are readily available and can be easily replaced or substituted. This means that producers can increase their output without significantly increasing the input costs, making the supply of the good more responsive to changes in price. Hence, the supply for this good will tend to be more elastic.

When Production of a Good Can Be Expanded Without Significantly