The primary determinant of the elasticity of supply is
A) the availability of substitutes.
B) the prices of substitutes.
C) income.
D) time.

Question

Quizplus · Accepted Answer

The primary determinant of the elasticity of supply is time. The more time producers have to adjust their production, the more elastic the supply becomes. This is because with more time, producers can adjust their processes, acquire more resources, or find new technologies to respond to price changes.

The Primary Determinant of the Elasticity of Supply Is