Determinants of the price elasticity of supply are:
A) adjustment time, whether the good is a luxury or a necessity.
B) availability of inputs, adjustment time.
C) flexibility of the production process, whether the good is a luxury or a necessity.
D) availability of inputs, whether the good is a luxury or a necessity.

Question

Quizplus · Accepted Answer

The availability of inputs and the adjustment time are the two main determinants of the price elasticity of supply, as they affect the ability of producers to respond to changes in price. The flexibility of the production process and whether the good is a luxury or a necessity may also have some impact on elasticity, but they are not as significant as input availability and adjustment time.

Determinants of the Price Elasticity of Supply Are