What is the main determinant of the price elasticity of supply
A)time
B)the number of sellers in the market
C)the number of close substitutes
D)luxuries versus necessities

Question

Quizplus · Accepted Answer

Time is the main determinant of the price elasticity of supply. It takes time for producers to adjust their production levels in response to changes in price. If a producer can quickly and easily adjust their production levels, then their supply will be more elastic. However, if it takes a long time for a producer to adjust their production levels, then their supply will be more inelastic.

What Is the Main Determinant of the Price Elasticity of Supply