If the owner of Kuji's Treats finds that,in the long run,he can trade one type of input for another,the price elasticity of supply is
A) relatively elastic.
B) relatively inelastic.
C) perfectly elastic.
D) perfectly inelastic.
E) unitary elastic.

Question

Quizplus · Accepted Answer

If the owner of Kuji's Treats finds that he can trade one type of input for another in the long run, it means that he can easily switch to other inputs that may be cheaper or more available. This indicates that the owner can adjust the quantity supplied in response to changes in the price of inputs. Hence, the price elasticity of supply is relatively elastic.

If the Owner of Kuji's Treats Finds That,in the Long