The supply of a good will be more elastic, the

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BlackTom AI · Accepted Answer

The question asks about what makes the supply of a good more elastic. Exploring each option helps uncover the correct reasoning.
Option 1: 'broader is the definition of the market for the good.' A broader market definition mainly influences the elasticity of demand, since it changes substitutability and consumers’ responsiveness to price. For supply, the definition of the market is not the primary driver of how responsive quantity supplied is to price changes, so this statement misattributes the core factor.
Option 2: 'longer the time period being considered.' This is the central idea behind the supply elasticity concept: given more time, producers can adjust production levels, switch inputs, enter or exit markets, and adopt new technologies. All of these allow quantity supplied to respond more to price changes, making supply more elastic in the long run than in the short run.
Option 3: 'larger the number of close substitutes for the good.' The number of substitutes affects the elasticity of demand, not supply. If there are many close substitutes, consumers can switch away when prices rise, but this mainly shifts demand curves rather than altering how much producers are willing to supply at different prices.
Option 4: 'more the good is considered a luxury.' Whether a good is a luxury or a necessity mainly influences demand elasticity and consumer behavior, not the fundamental responsiveness of producers to price changes in the short run. Supply elasticity is driven by production flexibility and time, not by the intrinsic nature of the good as luxury versus necessity.

In summary, option 2 correctly identifies the key driver of greater supply elasticity: more time allows producers to adjust quantities and inputs, increasing responsiveness to price changes. The other choices describe factors that primarily pertain to demand elasticity or misattribute the appropriate influence on supply responsiveness.

The supply of a good will be more elastic, the

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