The Price Elasticity of Supply Is __________ Elastic Over Time

question 88

Multiple Choice

The price elasticity of supply is __________ elastic over time because ___________.

• A) less; producers get accustomed to the price changes
• B) less; the ideal number of firms have time to move into or out of the industry
• C) more; producers have a longer time to adjust their production decisions
• D) more; producers get accustomed to the price changes

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Definitions:

Mortgage Financing

A method of financing property where the borrower takes out a loan secured by the property, typically from a bank or financial institution.

Land Developer

An individual or company that acquires land and prepares it for construction, including planning, zoning, and installing basic infrastructure.

Speculation

Speculation involves making high-risk financial transactions with the hope of significant profits, often based on future changes in market conditions.

Subject to the mortgage

This phrase denotes that a property is encumbered by a mortgage, meaning any dealings with the property must take into account the mortgage's terms and conditions.