Supply Elasticity Question?
The supply of apples is determined by the size of orchards, the number of apple trees, and the quantity of apples per tree. The quantity of apples per tree depends on the weather and the amount of fertilizer and pesticides that farmers use. Given all these factors that affect supply, is the long-run supply for apples likely to become more elastic or more inelastic than the short-run supply?
Answer:
More elastic.
In the short run, the apple trees, fertilizers, and other controllable factors are already set, and cannot be changed. For instance, suppose these fertilizers have already been sprayed on the trees. The harvest this year is pretty much already determined then. But if there isn't enough demand, the suppliers are out of luck. However, next years harvest can be adjusted, since these factors can be changed to yield a lower crop. Thus, in the long run, supply is more elastic.
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Answer:
More elastic.
In the short run, the apple trees, fertilizers, and other controllable factors are already set, and cannot be changed. For instance, suppose these fertilizers have already been sprayed on the trees. The harvest this year is pretty much already determined then. But if there isn't enough demand, the suppliers are out of luck. However, next years harvest can be adjusted, since these factors can be changed to yield a lower crop. Thus, in the long run, supply is more elastic.
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