Question

Please Help Me!!!!!!!!!

If the supply of a good is elastic, which statement is true?

A. The producer is experiencing diminishing marginal returns.

B. The producer will increase the amount being produced if the price rises.

C. The producer will increase the amount being produced if the price falls.

D. The producer is enjoying increasing marginal returns.

Answer 1

B. this can be traced back to supply and demand. The more demand the higher the price will become, so the producer will produce more of the product to fill the demand.

Answer 2

B. The producer will increase the amount being produced if the price rises.

Step-by-step explanation:

• The elasticity of supply measure the rate of the percentage changed in the supplied quantity of a product to the percentage change in its price.
• Good elasticity of supply depends on how easy to shift resources into the production of that commodity and how the costs of producing the commodity are varying as its production varies.