Unlike its competitors, one glass producer can use its equipment to make either windows for houses or windows for cars.Other things equal, compared to its competitors, its supply curve of windows for cars would be:
A)more elastic than the supply curves of competitors
B)more elastic than the supply curves of competitors .
C)greater than the supply curves of competitors.
D)less than the supply curves of competitors.

Question

Quizplus · Accepted Answer

The glass producer has the flexibility to switch production from windows for houses to windows for cars depending on market demand. Therefore, its supply curve for windows for cars would be more elastic compared to competitors who can only produce one type of window. This means the glass producer can respond more quickly to changes in price and quantity demanded of car windows, leading to a more responsive and elastic supply curve.

Unlike Its Competitors, One Glass Producer Can Use Its Equipment