A manufacturer who have used up half of its resources. In this case what is the elasticity of supply? Is it comparatively elastic or inelastic?
The elasticity of supply measures the responsiveness of the quantity supplied to a change in price or resource availability. In this case, if the manufacturer has used up half of its resources, it implies that the availability of resources has decreased.
To determine the elasticity of supply, we need more information about the quantitative relationship between the change in availability of resources and the corresponding change in quantity supplied. If a reduction in resources leads to a proportionate decrease in the quantity supplied, then the supply would be considered relatively inelastic. This would indicate that even though resources have been depleted, the manufacturer can still supply a similar quantity.
However, if a reduction in resources leads to a larger decrease in the quantity supplied, indicating a higher responsiveness to resource availability, the supply would be considered relatively elastic. This would suggest that the manufacturer is heavily reliant on the resources and cannot maintain the same level of production without sufficient resources.
Therefore, without more specific information, it is not possible to determine whether the elasticity of supply is comparatively elastic or inelastic in this case.