The elasticity of supply for some product will tend to be larger
A) the less time firms have to adjust to price changes.
B) the easier it is for firms to shift from the production of this product to another.
C) the lower is the elasticity of demand for the product.
D) the higher is the elasticity of demand for the product.
E) the harder it is for firms to shift from the production of this product to another.

Question

Quizplus · Accepted Answer

If it is easier for firms to shift from the production of this product to another, they will be more responsive to price changes and thus have a larger elasticity of supply.

The Elasticity of Supply for Some Product Will Tend to Be