The elasticity of supply for some product will tend to be larger
A)the higher is the elasticity of demand for the product.
B)the lower is the elasticity of demand for the product.
C)the harder it is for firms to shift from the production of this product to another.
D)the easier it is for firms to shift from the production of this product to another.
E)the less time firms have to adjust to price changes.

Question

Quizplus · Accepted Answer

If it is easier for firms to shift from the production of one product to another, they are likely to have more flexibility in responding to changes in demand. This will result in a larger elasticity of supply.

The Elasticity of Supply for Some Product Will Tend to Be