Which of the following is a key determinant of the price elasticity of supply?
A)the slope of the supply curve
B)the availability of substitutes in production
C)the available technology
D)the time it takes to change output in response to a change in price

Question

Quizplus · Accepted Answer

The time it takes to change output in response to a change in price is a key determinant of the price elasticity of supply. In general, the more time a producer has to adjust their production levels, the more elastic their supply will be, as they are able to make significant changes in output in response to small changes in price. Conversely, if a producer faces significant constraints in their ability to adjust their production levels quickly, their supply will be less elastic, as they are unable to respond as effectively to changes in price.

Which of the Following Is a Key Determinant of the Price