For a product with a constant or gently increasing opportunity cost of producing additional units,as more is produced,we expect that
A) demand is price elastic.
B) supply is price elastic.
C) demand is price inelastic.
D) supply is price inelastic.
E) demand is unit elastic.

Question

Quizplus · Accepted Answer

Supply elasticity refers to how much the quantity supplied of a good changes in response to a change in price. For a product with a constant or gently increasing opportunity cost, as production increases, producers are more willing and able to increase production for a given price increase, indicating that supply is price elastic.

For a Product with a Constant or Gently Increasing Opportunity