The MAIN determinant of price elasticity of supply is
A) time.
B) price.
C) quantity demanded.
D) quantity supplied.

Question

Quizplus · Accepted Answer

Time is the main determinant of price elasticity of supply because the ability of producers to increase or decrease production in response to price changes depends largely on the time frame. In the short term, supply is often inelastic because it takes time to adjust production levels, whereas in the long term, producers can adjust their production capacity, making supply more elastic.

The MAIN Determinant of Price Elasticity of Supply Is