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Which goods does the source give as examples likely to have highly elastic supply curves because their inputs are readily available and production can be expanded easily?
ALife-saving drugs and gasoline
BCaribbean cruises and sports vehicles
CDiamond rings and housing in prime locations
DPizza, bread, books, and pencils
Answer & Solution
Correct answer: D. Pizza, bread, books, and pencils
1. The source ties highly elastic supply to goods whose inputs are readily available and whose production can be scaled up easily.
2. It names pizza, bread, books, and pencils as examples of this kind of good.
3. Diamond rings and prime-location housing are instead given as examples of inelastic supply, since their inputs are limited.
4. Caribbean cruises and sports vehicles are examples given for highly elastic demand, not supply.
_Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.2 | Polar Cases of Elasticity and Constant Elasticity_
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