Consider 2 markets for carpenters: the city of Portland and the United States. Draw 2 supply curves for the carpenters: one for the city of Portland and one for the US. In which market would you expect more elasticity supply of carpenters? If you can't draw the graphs describe their shape( steep, flat, upward sloping, downward sloping, etc)
In general, the smaller the market, the more likely the supply curve will be inelastic.
To compare the elasticity of supply between the market for carpenters in the city of Portland and the United States, we can consider the following factors:
1. Size of the Market: The city of Portland is smaller in size compared to the entire United States. In general, smaller markets tend to have less elasticity of supply due to limited availability of resources.
2. Availability of Substitutes: The availability of substitutes for carpenters may vary between the city of Portland and the United States. If there are more substitutes available in the larger US market, it may increase the elasticity of supply compared to the smaller Portland market.
3. Mobility of Resources: The ease with which carpenters can move between different locations within the market also affects the elasticity of supply. If carpenters in the United States have higher mobility and can easily move between different regions, it may increase the elasticity of supply.
Now, let's discuss the shape of the supply curves for carpenters in the city of Portland and the United States:
1. City of Portland: The supply curve for carpenters in the city of Portland would likely be steep or upward sloping. This indicates that a relatively small change in price or demand would lead to a limited change in the quantity supplied. With fewer carpenters available in the local market, their supply may be less responsive to price changes.
2. United States: The supply curve for carpenters in the United States would likely be flatter or more elastic compared to Portland. This implies that a small change in price or demand would lead to a relatively larger change in the quantity supplied. The larger size of the market and the availability of a greater pool of carpenters across various regions may make the supply more elastic in response to price changes.
Overall, considering the factors mentioned above, the market for carpenters in the United States would likely exhibit more elasticity of supply compared to the city of Portland.