ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which product is more likely to have an elastic supply: ice cream or diamonds? Ice Cream, It is a lot easier for a producer to make more ice cream than it is to mine more diamonds, so the producer of ice cream will be more sensitive to price changes-supply will be more elastic.

Detailed explanation-2: -A candy proder is more likely to have an elastic supply because the production process can adjust more quickly to a change in price, and can make more quickly. When does the supply curve shift to the left? What is supply elasticity?

Detailed explanation-3: -An example of an elastic supply is the supply of non-necessity goods such as soft drinks where there are many substitutes and choices. A drastic change in price will not have a toll on the supply since consumers would opt for other brands of soft drinks or prefer close substitutes.

Detailed explanation-4: -Manufactured goods (in this case computers) tend to be more elastic because suppliers are able to increase production without increasing unit costs.