The main determinant of elasticity of supply is the
A)number of close substitutes for the product available to consumers.
B)amount of time the producer has to adjust inputs in response to a price change.
C)urgency of consumer wants for the product.
D)number of uses for the product.

Question

Quizplus · Accepted Answer

The main determinant of elasticity of supply is the amount of time the producer has to adjust inputs in response to a price change. This is because the more time a producer has to respond to price changes, the more elastic the supply can be, as they can adjust production levels more easily.

The Main Determinant of Elasticity of Supply Is the