An automobile manufacturing plant is likely to have a _____ price elasticity of supply than a bread bakery due to _____.
A) more elastic; a more flexible production process
B) more elastic; greater availability of inputs
C) less elastic; a less flexible production process
D) more elastic; lower availability of inputs

Question

Quizplus · Accepted Answer

Automobile manufacturing involves complex processes and requires more time to adjust production levels compared to a bread bakery, which can more easily and quickly change its output in response to price changes. This makes the automobile manufacturing plant's supply less elastic.

An Automobile Manufacturing Plant Is Likely to Have a _____