The supply of a good tends to be more elastic if:
A) a change in the price of the good causes only a small change in the quantity supplied.
B) the good is considered a necessary good.
C) production can be expanded without causing a big increase in the price of its inputs.
D) an increase in production has only a minimal impact on demand for the good.

Question

Quizplus · Accepted Answer

If production can be expanded without causing a big increase in the price of its inputs, then the producer can increase output without incurring significant cost increases. This means that the producer can respond more easily to changes in price by adjusting output. Therefore, the supply of the good would be more elastic.

The Supply of a Good Tends to Be More Elastic