Supply is more elastic if it is easy to expand production at a constant unit cost.

Question

Quizplus · Accepted Answer

When it is easy to expand production without incurring an additional cost per unit, suppliers can increase the quantity of goods supplied to the market without increasing their total production cost. This results in a more elastic supply curve, as sellers can adjust to changes in demand by increasing or decreasing the quantity supplied. Conversely, if it is difficult or expensive to increase production, supply will be more inelastic as sellers cannot respond quickly to changes in demand.

Supply Is More Elastic If It Is Easy to Expand