The longer the period of time allowed for the ___________ of a good to adjust to a change in the price of the good, the ___________ the price elasticity of supply will be. This statement assumes that the quantity supplied __________ be altered with time.
A)producer; higher; can
B)consumer; higher; can
C)producer; lower; can
D)producer; lower; cannot

Question

Quizplus · Accepted Answer

The correct answer is A) producer; higher; can. This is because the longer the period allowed for the production of a good to adjust to a price change, the more producers can respond by increasing or decreasing supply, making the price elasticity of supply higher. The assumption is that the quantity supplied can indeed be altered given enough time.

The Longer the Period of Time Allowed for the ___________