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Goods requiring complex production processes and a long time to produce, such as cruise ships and aircraft, tend to have a supply that is comparatively:
Amore elastic than goods like motorbikes
Bperfectly elastic at the prevailing price
Cexactly unit elastic at all output levels
Dless elastic than goods like motorbikes
Answer & Solution
Correct answer: D. less elastic than goods like motorbikes
1. Complex, slow-to-produce goods cannot quickly raise output when price rises.
2. A weak quantity response means low elasticity of supply.
3. The source contrasts aircraft and cruise ships (low elasticity) with motorbikes (higher elasticity).
4. So such goods have less elastic supply.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit III "Supply", p.9_
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