Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Time period for production
B
Availability of inputs
C
Consumer preferences
D
Production technology
Understanding the Answer
Let's break down why this is correct
Answer
Price elasticity of supply measures how much the quantity supplied of a good changes when its price changes. Several factors can affect this elasticity, including the availability of resources, production time, and flexibility of production. However, one thing that is NOT a determinant is the level of consumer demand. For example, if a company can easily increase production of toys when prices rise, that shows high elasticity of supply, regardless of whether more people want to buy those toys. So, understanding supply elasticity focuses on the producers' ability to respond to price changes, not directly on consumer demand.
Detailed Explanation
Consumer preferences do not affect how much producers can supply. Other options are incorrect because Some might think time affects supply; People may confuse inputs with preferences.
Key Concepts
Determinants of price elasticity of supply
Topic
Price Elasticity of Supply
Difficulty
easy level question
Cognitive Level
understand
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