The Most Important Determinant of Price Elasticity of Supply Is

question 382

Multiple Choice

The most important determinant of price elasticity of supply is

• A) the number of close substitutes there are for the good.
• B) the time period firms have to adjust to the new price.
• C) the price of the good.
• D) the importance of the good in the budgets of consumers.

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Definitions:

Transesterification

A chemical process in which an ester reacts with an alcohol to produce a new ester and a new alcohol, critical in biodiesel production.

Dimethyl Terephthalate

An organic compound used primarily in the production of polyesters, specifically polyethylene terephthalate (PET).

Step-Growth Polymerization

A polymerization process in which bi-functional or multi-functional monomers react to form first dimers, then trimers, and so on, growing by stepwise addition.

Polyethylene

A versatile synthetic polymer made from the polymerization of ethylene, widely used in plastic bags, containers, and packaging.