Suppose a good can be produced using commonly available resources.The elasticity of supply is
A) negative.
B) greater than zero but less than 1.
C) greater than 1.
D) zero.
E) More information is needed to make a determination about the size of the elasticity of supply.

Question

Quizplus · Accepted Answer

If a good can be produced using commonly available resources, it is likely that the supply of the good can be easily increased if there is a demand for it. This indicates that the elasticity of supply is greater than 1, meaning that a small increase in price will result in a relatively large increase in the quantity supplied. Essentially, producers can quickly and efficiently increase the supply of the good as needed, making the elasticity greater than 1.

Suppose a Good Can Be Produced Using Commonly Available Resources