The longer the period of time allowed for the producer 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)more elastic; can
B)more elastic; cannot
C)more inelastic; can
D)more inelastic; cannot

Question

Quizplus · Accepted Answer

The price elasticity of supply becomes more elastic over time because producers have more time to adjust their production levels in response to price changes. This adjustment can include factors like changing the amount of inputs used, altering production processes, or investing in new technologies.

The Longer the Period of Time Allowed for the Producer