For a highly perishable commodity that cannot be stored, the supply cu…

Question

For a highly perishable commodity that cannot be stored, the supply curve during a very short period is generally:

Accepted Answer

A. perfectly inelastic

1. In a very short period, output already produced cannot be added to.
2. A perishable good cannot be stored to adjust the quantity offered.
3. So quantity supplied stays fixed whatever the price, giving $E_s = 0$.
4. Zero elasticity is perfectly inelastic supply.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit III "Supply", p.6_

Answer

perfectly elastic

Answer

relatively greater elastic

Answer

unitary elastic

For a highly perishable commodity that cannot be stored, the supply curve during a very short period is generally:

Keep practising Unit 2A: Demand, Supply and Market Equilibrium