When production of a good can be expanded withoutsignificantly increasing the overall demand for its inputs:
A)supply for this good will tend to be more inelastic.
B)supply for this good will tend to be more elastic.(True Answer )Correct
C)price for the good will be constant.
D)the elasticity of supply of the product will equal the elasticity of supply of the inputs.

Question

Quizplus · Accepted Answer

When production of a good can be expanded without significantly increasing the overall demand for its inputs, it means that the inputs required to produce the good are readily available and do not have a significant impact on their prices. In this case, the supply for the good will tend to be more elastic as producers can easily increase the output at a proportional rate without incurring higher costs. Therefore, the best choice is B.

When Production of a Good Can Be Expanded Withoutsignificantly Increasing