What is the primary determinant of the price elasticity of supply?

The primary determinant of the price elasticity of supply is closely related to the amount of time a producer has to adjust inputs in response to a change in price. When producers have more time to respond to price changes, they can make adjustments to their production processes, such as increasing the number of workers, acquiring more materials, or expanding their facilities. This flexibility allows them to increase supply significantly when prices rise, resulting in a more elastic supply curve.

In contrast, when producers have less time to adjust to price changes, they may be limited in their ability to increase production due to fixed resources or the nature of their production processes. This leads to a less elastic supply curve as producers cannot respond quickly to changes in price. Therefore, the time frame for adjustment is critical in determining how responsive supply is to changes in price, making it the correct choice regarding the elasticity of supply.