Question

A key determinant of the price elasticity of supply is the a. extent to which buyers alter their quantities demanded in response to changes in prices. b. number of close substitutes for the good in question. c. extent to which buyers alter their quantities demanded in response to changes in their incomes. d. length of the time period.

Answer 1

d. length of the time period.

Step-by-step explanation:

The price elasticity of the supply measures the percentage change in the quantity supplied with the percentage change in price

In arithmetically,

The price elasticity of the supply = (percentage change in the quantity supplied ÷ percentage change in price)

It indicates a direct relationship between the quantity supplied and the price.

Moreover, the key determinant of the price elasticity of supply is time period