Which of the Following Statements Is Correct with Respect to Price

question 155

Multiple Choice

Which of the following statements is correct with respect to price elasticity of supply?

• A)The price elasticity of supply tends to be greater as new firms can easily enter the market.
• B)The price elasticity of supply tends to be greater as expanding existing production facilities is less costly.
• C)The price elasticity of supply tends to be smaller as firms have limited production facilities.
• D)All of the above are correct.