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

Question

Quizplus · Accepted Answer

The price elasticity of supply is significantly influenced by the time period firms have to adjust to a new price, as it affects their ability to change production levels in response to price changes.

An Important Determinant of the Price Elasticity of Supply Is