Elasticity of supply will increase when
A)the number of producers selling a product decreases.
B)producers are given less time to respond to price changes.
C)the number of consumers wanting to purchase a product increases.
D)it becomes easier to substitute one factor of production for another in a manufacturing process.

Question

Quizplus · Accepted Answer

The elasticity of supply increases when it becomes easier to substitute one factor of production for another in a manufacturing process because this flexibility allows producers to more readily adjust their production in response to price changes, making supply more responsive or elastic.

Elasticity of Supply Will Increase When