If a factor of production comes to have more and more alternative uses,its supply curve to any one use
A)remains unchanged.
B)becomes more inelastic.
C)becomes more elastic.
D)may move in any direction.

Question

Quizplus · Accepted Answer

If a factor of production has multiple uses, its supply curve to any one use becomes more elastic because as the price for one specific use goes up, producers are more likely to switch to using the factor for its alternative uses, increasing the elasticity of supply for that specific use.

If a Factor of Production Comes to Have More and More