Labu villagers brought fresh fish to Lae market. What is the elasticity of supply? Is it comparatively elastic or inelastic?
Apologies for the incorrect assumption. In that case, if the Labu villagers are not part of a local fishing industry and are just individual villagers bringing their own catch to the Lae market, it is likely that the elasticity of supply for fresh fish is relatively inelastic.
The elasticity of supply measures the responsiveness of quantity supplied to changes in price. If the Labu villagers are solely dependent on their individual fishing efforts and do not have the ability to easily increase or decrease their fishing activities in the short term, the supply of fish may be relatively fixed.
In this scenario, even if the price of fish were to increase, the individual villagers may not be able to significantly increase their fishing efforts immediately, resulting in a limited increase in the quantity supplied. Hence, the elasticity of supply would be relatively inelastic.
To determine the elasticity of supply, we need to know the percentage change in quantity supplied divided by the percentage change in price. Unfortunately, without specific numerical data, it is not possible to calculate the exact elasticity of supply.
However, we can make a general inference. If the Labu villagers are bringing fresh fish to Lae market, we can assume that they are part of a local fishing industry. In such cases, the supply of fish is often relatively responsive to changes in price, as fishermen can easily adjust their fishing efforts in the short term.
Thus, the elasticity of supply for fresh fish in this context is expected to be comparatively elastic. This means that a small change in price will result in a proportionally larger change in the quantity supplied.
They are not part of a local fishing industry, they're just villagers. So what's the elasticity of supply
To determine the elasticity of supply, we need to look at the responsiveness of the quantity supplied of a good to changes in its price. The formula for elasticity of supply is:
Elasticity of Supply = % Change in Quantity Supplied / % Change in Price
To calculate the elasticity of supply, we need two pieces of information: the percentage change in quantity supplied and the percentage change in price. However, these values are not provided in the question. Therefore, we cannot determine the exact elasticity of supply.
In general, if the quantity supplied is highly responsive to changes in price, then supply is considered relatively elastic. On the other hand, if the quantity supplied is not very responsive to changes in price, supply is considered relatively inelastic.
Without specific information about the price changes and corresponding quantity changes, we cannot determine whether the elasticity of supply in this particular scenario is relatively elastic or inelastic.