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 these statements about elasticity of supply are TRUE.

Question

Quizplus · Accepted Answer

In the very short run (say, over a few hours, a day, or a week), a supplier may not be able to change the supply at all. In this situation, we would see a vertical supply curve. This situation is often relevant in the market for fresh produce. This vertical supply curve, often found in the short run, is called inelastic supply.

Which of the Following Statements About Elasticity of Supply Is