elasticity of supply: refer to graphs a, b, c, d for question 16 - 18\na. elastic\nb. inelastic\nc…

elasticity of supply: refer to graphs a, b, c, d for question 16 - 18\na. elastic\nb. inelastic\nc. elastic\nd. inelastic\n16. laura is a dairy farmer. typically, she sells milk to grocery stores for $2 a gallon, however stores now want to sell her milk at half price. which graph accurately depicts the elasticity of supply of her milk, which happens to be nearing its expiration date?\n17. recently giuseppes shoes have become widely popular and prices have increased. giuseppes factory was being underutilized, as employees were working only part - time and machines were not all being used. which graph accurately depicts the elasticity of supply of giuseppes shoes?\n18. calvin produces high fashion sweaters. typically, he sells his sweaters to nordstrom at the price of $100 per sweater, however nordstrom now wants to sell calvins sweaters at half price. considering how a products sensitivity to time can impact elasticity, which graph accurately depicts the elasticity of supply of calvins sweaters?

elasticity of supply: refer to graphs a, b, c, d for question 16 - 18\na. elastic\nb. inelastic\nc. elastic\nd. inelastic\n16. laura is a dairy farmer. typically, she sells milk to grocery stores for $2 a gallon, however stores now want to sell her milk at half price. which graph accurately depicts the elasticity of supply of her milk, which happens to be nearing its expiration date?\n17. recently giuseppes shoes have become widely popular and prices have increased. giuseppes factory was being underutilized, as employees were working only part - time and machines were not all being used. which graph accurately depicts the elasticity of supply of giuseppes shoes?\n18. calvin produces high fashion sweaters. typically, he sells his sweaters to nordstrom at the price of $100 per sweater, however nordstrom now wants to sell calvins sweaters at half price. considering how a products sensitivity to time can impact elasticity, which graph accurately depicts the elasticity of supply of calvins sweaters?

Answer

Explanation:

Step1: Understand elastic and inelastic supply

Elastic supply means a small change in price leads to a large change in quantity supplied. Inelastic supply means a change in price leads to a small change in quantity supplied.

Step2: Analyze Laura's situation

Laura's milk is nearing expiration. Stores want to buy at half - price. Since the milk is perishable, she has little flexibility in supply. So it's inelastic supply (Graph B).

Step3: Analyze Giuseppe's situation

Giuseppe's factory was under - utilized. With an increase in price due to popularity, he can quickly increase production. So it's elastic supply (Graph C).

Step4: Analyze Calvin's situation

High - fashion sweaters are sensitive to time. A price cut may not lead to a large increase in quantity supplied as they may go out of fashion. So it's inelastic supply (Graph B).

Answer:

  1. B
  2. C
  3. B