Chapter 48, Problem 5MCQ

To determine

The option that leads to a more inelastic price elasticity of supply

Explanation of Solution

A shorter time period in which to supply the good results in a more inelastic price elasticity of supply because if timeframe is shorter then it is not easy to adjust the supply in the market. Therefore, the correct option is c.

Economics Concept Introduction

Introduction:

Elasticity of supply represents the measure of sensitivity of supply to demand that shows how change in price or supply of goods affects the quantity demanded.