In Which of the Following Cases Is the Elasticity of Supply

question 82

Multiple Choice

In which of the following cases is the elasticity of supply for a good likely to be high?

• A) The fixed cost of producing the good is very high.
• B) The firm is operating with excess capacity.
• C) The good has a large number of substitutes.
• D) The market price of the good is very high.

---

Definitions:

Mainstream Economics

The body of knowledge, models, and assumptions predominantly accepted and taught by economists and academic institutions around the world.

Employment Relationship

The formal or informal agreement between an employer and an employee that outlines the terms of employment, including duties, rights, and obligations.

Employee Voice

The way employees communicate their views, concerns, and suggestions about their work and the functioning of their organization to their employers.

Government Intervention

Refers to the actions taken by a government to influence or directly regulate various aspects of its economy, social affairs, or public policy.