Which of the Following Statements Is CORRECT with Respect to Price

question 208

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.

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