Question

The most important determinant of price elasticity of supply is:
the number of close substitutes there are for the good.
the time period firms have to adjust to the new price.
the price of the good.
the importance of the good in the budgets of consumers.

Answer 1

Answer:

The most important determinant of the the time period firms have to adjust to the new price

Explanation:

The option 1 is not correct as it is not defining the price elasticity.

The option 2 is correct as the effect of time on the price elasticity of supply is most significant

The option 3 is not correct because price is the outcome of the price elasticity of supply.

The option 4 is not correct as it is not a determinant of the price elasticity of the supply.