Which of these is considered a primary determinant of price elasticity of supply?
A) whether a good is a luxury item
B) the availability of substitutes
C) the time available to make changes to manufacturing plants
D) the proportion of household income spent on the product or service

Question

Quizplus · Accepted Answer

The time available to make changes to manufacturing plants is a primary determinant of price elasticity of supply because it affects how quickly and easily producers can respond to changes in market prices. The more time producers have to adjust their production, the more elastic the supply becomes.

Which of These Is Considered a Primary Determinant of Price