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Which of the following is an example of a good with an elastic supply?

Which of the following is an example of a good with an elastic supply?

Examples of goods with elastic supply Fidget spinners. These goods are relatively easy to make, requiring only basic raw materials of plastic. Many manufacturing firms could easily adapt production to increase supply. Taxi services.

What is elastic supply in economics?

Price elasticity of supply measures the responsiveness to the supply of a good or service after a change in its market price. According to basic economic theory, the supply of a good will increase when its price rises. Elastic means the product is considered sensitive to price changes.

What is perfectly elastic supply?

If supply is perfectly elastic, it means that any change in price will result in an infinite amount of change in quantity. Perfect elastic demand means that quantity demanded will increase to infinity when the price decreases, and quantity demanded will decrease to zero when price increases.

Which of the following producers is most likely to have an elastic supply for its product?

Review of Unit 2

Question Answer
Which producer is likely to have an elastic supply for its product? petroleum company, hot dog stand, apple orchard, or stove manufacturer hot dog stand
What is an example of consumer taste affecting demand? The sales of video games based on movies rise if the movies are hits.

What increases the elasticity of supply for most goods and services?

the ease with which a producer can change production to respond to price changes is the main factor that affects supply. producers that can respond more easily and quickly will have more elastic supply than producers who have a difficult time responding to price changes.

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What conclusion can you draw from this supply curve?

FROM THE HAMBURGER SUPPLY CURVE GRAPH, What conclusion can you draw from this supply curve? ANSWER: An increase in the number of producers increased supply.

What is the conclusion of supply?

The law of supply describes the behavior of sellers. In general, sellers will supply more of a good at higher prices than at lower prices. When this relationship is graphed, the result is an upward-sloping supply curve. A change in price results in movement along the supplycurve from one point to another.

What causes decrease in supply?

Factors that can cause a decrease in supply include higher production costs, producer expectations and events that disrupt supply. Higher production costs make supplying a product less profitable, resulting in firms being less willing to supply the good.

What is a decrease in supply?

SUPPLY DECREASE: A decrease in the willingness and ability of sellers to sell a good at the existing price, illustrated by a leftward shift of the supply curve. A decrease in supply is caused by a change in a supply determinant and results in a decrease in equilibrium quantity and an increase in equilibrium price.

What happens to quantity when supply decreases?

A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease. To determine what happens to equilibrium price and equilibrium quantity when both the supply and demand curves shift, you must know in which direction each of the curves shifts and the extent to which each curve shifts.

What happens to supply and demand when price decreases?

If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. The same inverse relationship holds for the demand for goods and services.

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What is a change in supply?

Key Takeaways. Change in supply refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve. Essentially, a change in supply is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price.

What causes demand or supply to change?

Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations. A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand.