A Key Determinant of the Price Elasticity of Supply Is

question 26

Multiple Choice

A key determinant of the price elasticity of supply is the time period under consideration.Which of the following statements best explains this fact?

• A)Supply curves are steeper over long periods of time than over short periods of time.
• B)Buyers of goods tend to be more responsive to price changes over long periods of time than over short periods of time.
• C)The number of firms in a market tends to be more variable over long periods of time than over short periods of time.
• D)Firms prefer to change their prices in the short run rather than in the long run.

---

Definitions:

Parent Entity

A company that owns enough voting stock in another corporation to control management and operations by influencing or electing its board of directors.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements to combine the financial information of a parent company and its subsidiaries.

Non-controlling Interest

The portion of equity interest in a subsidiary not held by the parent company.