The price elasticity of supply is higher when
A) the number of buyers in the market decreases.
B) the product in question is an inferior good.
C) the number of buyers in the market increases.
D) producers have more time to adjust to price changes.

Question

Quizplus · Accepted Answer

When producers have more time to adjust to price changes, they are more likely to be able to respond to the changes in price by increasing or decreasing their supply. Therefore, the price elasticity of supply is higher.

The Price Elasticity of Supply Is Higher When