The factors that affect the price elasticity of supply include: Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. check all that applyrelative need and relative cost.time needed to adjust to changes in price.the availability of inputs.the flexibility of the production process.degree of necessity.
Question
The factors that affect the price elasticity of supply include: Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. check all that applyrelative need and relative cost.time needed to adjust to changes in price.the availability of inputs.the flexibility of the production process.degree of necessity.
Solution
The factors that affect the price elasticity of supply include:
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Time needed to adjust to changes in price: This is a key factor because if a supplier can quickly adjust to price changes, the supply is more elastic. If it takes a long time to adjust, the supply is less elastic.
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The availability of inputs: If the inputs required for production are readily available, the supply is more elastic. If the inputs are scarce or hard to come by, the supply is less elastic.
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The flexibility of the production process: If a producer can easily switch between different products, the supply is more elastic. If the production process is rigid and difficult to change, the supply is less elastic.
The relative need and relative cost, and degree of necessity do not directly affect the price elasticity of supply. These factors are more related to the price elasticity of demand. Therefore, they should not be checked in this context.
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