Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is ________.a. basic research.
b. a congested toll road.
c. clothing.
d. spinach.

The more (less) sensitive a good's quantity supplied to a change in its price, the more elastic (inelastic) the supply of a good the more (less) effective the government's policy to influence the quantity supplied. Out of the listed options, Basic Research is the most elastic in supply.

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Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is ________.a. basic research. b. a congested toll road. c. clothing. d. spinach.

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Suppose the government has enacted policies to influence the amount of good x that is supplied. These policies are most likely to improve the allocation of resources if good x is ________.a. basic research.
b. a congested toll road.
c. clothing.
d. spinach.