The Most Important Determinant of Price Elasticity of Supply Is

question 8

Multiple Choice

The most important determinant of price elasticity of supply is

• A)price elasticity of demand
• B)technological conditions such as how rapidly costs increase when a firm increases its output
• C)whether the production process relies heavily on capital or on labor
• D)the number and closeness of available substitutes
• E)whether the product is a normal good or an inferior good

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Definitions:

Thomas Malthus

An English economist and demographer, best known for his theory that population growth will outpace the food supply, leading to societal collapse.

Industrialization

The development of industries in a country or region on a wide scale, leading to significant changes in society and the economy.

Population Growth

The increase in the number of individuals in a population, typically measured as a percentage of the existing population.

Gentrification

The process of middle-class people moving into rundown areas of the inner city and restoring them.