Which of the following leads a good to have a high elasticity of supply?
I. The good must be produced using unique resources.
II. The good is produced using commonly available resources.
A) I only
B) II only
C) I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

The elasticity of supply for a good is higher when it is produced using commonly available resources, as it is easier for producers to increase production in response to price changes. Unique resources make it harder to adjust production, leading to lower elasticity of supply.

Which of the Following Leads a Good to Have a High