If the entrepreneur is willing to take more risk , the supply will be _____
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: more elastic
Supply elasticity measures how much quantity supplied changes in response to a change in price.
- When an entrepreneur is willing to take more risk, they are more responsive to market changes and quickly adjust production when prices change.
- This means the supply curve becomes more elastic because the firm is willing to expand production when prices rise and reduce it when prices fall.