Multiple choice

The factors affecting elasticity of supply are

  1. nature of goods, technology

  2. time factor, future expectations

  3. both (1) & (2)

  4. neither (1) nor (2)

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Elasticity of supply is affected by both nature of goods (perishable vs durable, production time) and technology, plus time factor and future expectations. Options A and B are incomplete lists. Option D is incorrect because both sets of factors matter. Supply elasticity depends on production flexibility and time horizon.

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