Econ151 Ch4 Determinants

Question 0

Determinants of Elasticity of Supply

Answer 0

1)the quantity of resources available to produce the good and how quickly and easily these resources can move into and out of the production of the good
2)time period
Longer the time period more elastic supply

2) the time period under consideration in that the longer the time period the more elastic supply will become

Question 1

Determinants of Demand Elasticity

Answer 1

1) number of substitutes
2) time period
3) position along demand curve

Question 2

Why curve becomes flatter over time?

Answer 2

1) consumers find cheaper substitutes

2) producers are able to produce more goods providing consumers with a range of choices