Low supply elasticity from time-intensive inputs

Steps:

• Price elasticity of supply (+0.1) is inelastic, as |PES| < 1, so quantity supplied responds little to price changes.
• Inelastic supply arises when production factors cannot be scaled quickly.
• Nuclear plant construction requires specialized resources that take time to assemble.
• Skilled labor hiring delays limit short-run supply responsiveness.

Why C is correct:

• Inelastic supply reflects time lags in acquiring fixed inputs like skilled labor, per the economic definition of PES = (%ΔQ_s) / (%ΔP), where delays keep %ΔQ_s low.

Why the others are wrong:

• A: Easy land access reduces input barriers, increasing supply elasticity.
• B: Firm competition influences market dynamics but not individual supply responsiveness.
• D: Substitute scarcity affects demand elasticity, not supply.

Final answer: C