Which of the following statements about elasticity of supply is TRUE?
A) A product's elasticity of supply is calculated directly from its elasticity of demand.
B) In the long run, the supply curve for most products is highly inelastic.
C) If a product's demand curve is inelastic, then its supply curve also must be inelastic.
D) In the very short run (after the growing season has begun), the supply curve for most agricultural products is highly inelastic.
E) All of the above are true.

Question

Quizplus · Accepted Answer

The statement that the supply curve for most agricultural products is highly inelastic in the very short run (after the growing season has begun) is true. The other statements are false. Elasticity of supply is not directly calculated from elasticity of demand, the supply curve for most products is not highly inelastic in the long run, and a product's demand elasticity does not necessarily determine its supply elasticity.

Which of the Following Statements About Elasticity of Supply Is