One reason why the price elasticity of supply for DVD players is greater than one is that
A) the cost of producing DVD players is small.
B) the storage of DVD players is not possible.
C) DVD players can be easily stored.
D) the demand for DVD players is fairly large.
E) DVD players require relatively advanced technology for their production.

Question

Quizplus · Accepted Answer

The price elasticity of supply measures how much the quantity supplied of a good responds to a change in the price of that good. A price elasticity greater than one indicates that the quantity supplied responds strongly to price changes. The ability to easily store DVD players means that manufacturers can quickly increase supply in response to price increases, without the immediate need to produce more, making the supply more elastic.

One Reason Why the Price Elasticity of Supply for DVD