An important determinant of the price elasticity of supply is
A) the time period firms have to adjust to a new price.
B) how well consumers like the commodity.
C) the proportion of the consumer's total budget spent on the good.
D) whether the good is a durable or a nondurable.

Question

Quizplus · Accepted Answer

The time period firms have to adjust to a new price significantly affects the price elasticity of supply, as more time allows firms to adjust their production levels more easily to price changes.

An Important Determinant of the Price Elasticity of Supply Is