The supply curve for a good will be more elastic if:

a. production inputs are readily available at a relatively low cost.

b. there is very little time for producers to respond to a price change.

Question

Business

Tyler Graves

14 January, 16:37

The supply curve for a good will be more elastic if:

a. production inputs are readily available at a relatively low cost.

b. there is very little time for producers to respond to a price change.

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Answers (1)

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Donald Bradley · Answer 1

a. production inputs are readily available at a relatively low cost. Supply is said to be elastic when a small change in prices leads to a greater demand in the quantity of goods supplied. In this case Elasticity is greater than 1

Explanation:

Elasticity of supply measures the extent to which the quantity of a commodity supplied by the producer changes as a result of a little change in the price of the commodity. Elasticity of supply is the degree of responsiveness of supply to little changes in the price of a commodity

The supply curve for a good will be more elastic if:a. production inputs are readily available at a relatively low cost.b. there is very little time for producers to respond to a price change.

The supply curve for a good will be more elastic if:

a. production inputs are readily available at a relatively low cost.

b. there is very little time for producers to respond to a price change.