Supply elasticity low when production constraints limit quick scaling

Steps:

• Recall price elasticity of supply (PES) measures how much quantity supplied changes with price; low PES occurs with fixed or hard-to-expand inputs.
• Eliminate A: It describes demand side, irrelevant to supply responsiveness.
• Eliminate B: Easy industry switching expands supply quickly, raising PES.
• Identify C: Skilled labor supply is inelastic, constraining production ramps.
• Confirm D: Abundant materials enable easy output increases, boosting PES.

Why C is correct:

• Skilled labor has low short-run supply elasticity due to training time, limiting producers' ability to respond to price rises (PES < 1).

Why the others are wrong:

• A: Focuses on demand diversity, not supply factors affecting PES.
• B: Facilitates rapid supply expansion, making PES high.
• D: Reduces input bottlenecks, allowing elastic supply response.

Final answer: C