The price elasticity of supply depends on:
A) what share of income consumers spend on it.
B) whether goods are complements or substitutes.
C) whether goods are normal or inferior.
D) what the cost of supplying additional units of a good is.

Question

Quizplus · Accepted Answer

The price elasticity of supply depends on how easily and cost-effectively producers can increase production when prices rise. This is directly related to the cost of supplying additional units of a good. Factors like consumer income share, and whether goods are complements, substitutes, normal, or inferior, primarily affect demand rather than supply elasticity.

The Price Elasticity of Supply Depends On