Decreases in Input Costs and a Longer Time Since a Price

Multiple Choice

Decreases in input costs and a longer time since a price change will tend to:

A) increase the price elasticity of supply.
B) decrease price elasticity of supply.
C) have no impact on the price elasticity of supply.
D) increase price elasticity of supply with decreases in input costs but decrease price elasticity of supply with length of time.
Answer Key