The elasticity of supply does NOT depend on
A) resource substitution possibilities.
B) the fraction of income spent on the product.
C) the time elapsed since the price change.
D) none of the above because all of the factors listed affect the elasticity of supply.

Question

Quizplus · Accepted Answer

The elasticity of supply is not affected by the fraction of income spent on the product; this factor is more relevant to the elasticity of demand. Elasticity of supply is influenced by resource substitution possibilities and the time elapsed since the price change.

The Elasticity of Supply Does NOT Depend on