A key determinant of the price elasticity of supply is the time period under consideration.Which of the following statements best explains this fact?
A)Supply curves are steeper over long periods of time than over short periods of time.
B)Buyers of goods tend to be more responsive to price changes over long periods of time than over short periods of time.
C)The number of firms in a market tends to be more variable over short periods of time than over long periods of time.
D)Firms tend to be more responsive to price changes over long periods of time than over short periods of time.

Question

Quizplus · Accepted Answer

Over longer periods, firms can adjust their production capacity, enter or exit the market, and make other changes, making supply more elastic.

A Key Determinant of the Price Elasticity of Supply Is