The supply curve will be more inelastic when
A) inputs to production are scarce.
B) firms' response to a price change is limited by the limited capacity of their production facilities.
C) a good has many substitutes.
D) the firm is experiencing diminishing returns to a variable input.

Question

Quizplus · Accepted Answer

Firms' response to a price change is limited by the limited capacity of their production facilities.

The Supply Curve Will Be More Inelastic When