When a supplier is restricted to operating during certain hours, which in turn limits its quantity supplied, the elasticity of supply is Choose one: A. more than 1. B. 1. C. less than 1. D. 0.

Respuesta :

Answer:

C. less than 1

Explanation:

Supply is elastic if producers can increase output without a rise in cost or a time delay which means Price elasticity of supply is more than 1.

Supply is inelastic if producers find it hard to change production in a given time period which means Price elasticity of supply is less than 1.

When Price elasticity of supply equals 0 then supply is perfectly inelastic.