Question

The supply curve for a good will be more elastic if: spending on the good accounts for a large share of a consumer's income. there is very little time for producers to respond to a price change. production inputs are readily available at a relatively low cost. the good is a luxury item.

Answer 1

The supply curve for a good will be more elastic if "production inputs are readily available at a relatively low cost".

Option: C

Explanation:

The graphical interpretation is applied to understand the concept of supply curve for any good available in market. This is done by correlating the cost of a good or service and the supplied amount during a given period. In such representation the cost is mentioned vertically on the left axis, while the amount supplied is mentioned horizontally.

The coverage of responsiveness with respect to variations in cost of demand or supply products is understood as elasticity.  Here when the small variations in cost leads to the large variations in consumed amount of product, thus curve become more elastic. While if a curve is found less elastic, which showcase that their is large variations in the price to impact a change in consumed amount.