The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively low.
B. cupcakes are a normal good.
C. the supply curve for cupcakes is downward sloping.
D. the elasticity of supply of cupcakes is relatively high.
Answer: D
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