The Elasticity of Supply for Some Product Will Tend to Be

question 34

Multiple Choice

The elasticity of supply for some product will tend to be larger

• A)the higher is the elasticity of demand for the product.
• B)the less time firms have to adjust to price changes.
• C)the easier it is for firms to shift from the production of this product to another.
• D)the lower is the elasticity of demand for the product.
• E)the harder it is for firms to shift from the production of this product to another.

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Definitions:

Product Costs

Costs that are directly associated with the creation of a product, including materials, labor, and overhead.

Direct Materials Cost

The expense associated with the raw materials directly used in the manufacture of a product.

Employee Wages

Compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Total Product Cost

The sum of all costs directly or indirectly related to creating a product, including material, labor, and overhead expenses.