Over a short time span, the supply of a new drug used to relieve muscle pain is highly inelastic. By contrast, the supply of printed newspapers is far more elastic over that same period. What might account for the difference in supply elasticity between the drug and printed newspapers during this time period?
- Anew drug: cost per unit is low; printed newspapers: cost per unit is high
- Bnew drug: discovery is by chance; printed newspapers: takes longer to produce
- Cnew drug: research and development essential; printed newspapers: excess capacity in printing
- Dnew drug: similar products available; printed newspapers: similar products unavailable