A determinant of the price elasticity of supply that is also a determinant of the price elasticity of demand is:
A)availability of inputs.
B)flexibility of the production process.
C)adjustment time.
D)availability of outputs.

Question

Quizplus · Accepted Answer

Adjustment time is a determinant that affects both price elasticity of demand and price elasticity of supply. Longer adjustment time means that both suppliers and consumers have more time to adjust their production or consumption decisions in response to changes in price, leading to a more elastic response.

A Determinant of the Price Elasticity of Supply That Is