Which of these products or services is likely to have an inelastic supply in the short run?
A. cargo ships
B. haircuts
C. newspapers
D. staples
I chose D and got it wrong so would it be C instead?
This is a shift or change in supply in econmics is quite different from change in the quantity supplied.
To determine which product or service is likely to have an inelastic supply in the short run, we need to understand what an inelastic supply means. In economics, the elasticity of supply measures the responsiveness of the quantity supplied to a change in price.
If a product or service has an inelastic supply, it means that its quantity supplied does not change significantly in response to changes in price. In other words, the producers are not able to quickly adjust the quantity supplied in the short run.
Let's analyze the options:
A. Cargo ships: In the short run, it may be difficult to increase the supply of cargo ships immediately because producing cargo ships typically involves long lead times and significant capital investment. However, it is possible to increase the supply over the long run. So, cargo ships may have an elastic supply in the short run.
B. Haircuts: Haircuts are a service that can be provided relatively quickly by barbers or hairdressers. They can adjust their working hours and hire more staff if there is a high demand, making the supply of haircuts relatively elastic in the short run.
C. Newspapers: In today's digital age, newspapers are facing declining demand and many have transitioned to online platforms. The production of physical newspapers involves printing, distribution, and coordination, which may limit the ability to quickly adjust supply in the short run. Hence, newspapers are more likely to have an inelastic supply in the short run.
D. Staples: Staples, such as common household necessities like pens, paper clips, or adhesive tapes, are usually produced in large quantities and can be easily stocked up. Therefore, the supply of staples can be adjusted relatively quickly, suggesting an elastic supply in the short run.
Based on this analysis, option C, newspapers, is the most likely to have an inelastic supply in the short run.