Asked by Isabel Sanchez on May 21, 2024
Verified
Elasticity of supply will increase when
A) the number of producers selling a product decreases.
B) producers are given less time to respond to price changes.
C) the number of consumers wanting to purchase a product increases.
D) it becomes easier to substitute one factor of production for another in a manufacturing process.
Elasticity of Supply
A measure of how much the quantity supplied of a good or service changes in response to a change in price.
Factor of Production
Inputs used in the production of goods or services, typically categorized into land, labor, capital, and entrepreneurship.
- Understand the concepts of elasticity of demand and supply.
Verified Answer
NM
Nicolas MartinezMay 23, 2024
Final Answer :
D
Explanation :
The elasticity of supply increases when it becomes easier to substitute one factor of production for another in a manufacturing process because this flexibility allows producers to more readily adjust their production in response to price changes, making supply more responsive or elastic.
Learning Objectives
- Understand the concepts of elasticity of demand and supply.