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:

Cognitive Control

The ability of individuals to regulate and manipulate their thoughts, emotions, and actions in pursuit of long-term goals.

Crowded

A situation or environment characterized by high density of people or objects within a given space, often causing discomfort or inconvenience.

Nonrenewable Resources

Natural resources such as coal, oil, and natural gas, that cannot be replenished in a short period of time and will eventually deplete.

Sustainable Resources

Natural resources that are used in a manner that satisfies current needs without compromising the ability of future generations to meet their needs.