What is a key determinant of the elasticity of supply
A)the ability of sellers to change the price of the good they produce
B)the number of firms in the market
C)how responsive buyers are to changes in sellers' prices
D)the ability of sellers to change the amount of the good they produce

Question

Quizplus · Accepted Answer

The elasticity of supply is determined by the ability of sellers to change the amount of the good they produce, or in other words, the flexibility of their production process. If sellers can easily and quickly adjust their production in response to changes in price or demand, the supply of the good will be more elastic (responsive), while if they cannot adjust production easily, the supply will be more inelastic (less responsive).

What Is a Key Determinant of the Elasticity of Supply