If a given factor of production is highly mobile across alternative uses, the factor's supply is
A) immobile at the industry level.
B) perfectly inelastic.
C) highly price inelastic.
D) highly price elastic.
E) irrelevant to its earnings.

Question

Quizplus · Accepted Answer

If a factor of production is highly mobile, it can easily switch to other uses if the price changes. This means that its supply is highly elastic, as it can increase or decrease depending on the price offered. Therefore, the best answer is D - highly price elastic.

If a Given Factor of Production Is Highly Mobile Across