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The source names diamond rings and housing in prime locations, such as apartments facing Central Park in New York City, as examples of what kind of good?
AGoods with easily expandable production and supply
BNormal goods with a positive income elasticity value
CGoods that are close substitutes for one another
DGoods with a limited supply of inputs to produce them
Answer & Solution
Correct answer: D. Goods with a limited supply of inputs to produce them
1. The source discusses zero elasticity of supply and then gives realistic examples that come close to it.
2. Goods with a limited supply of inputs are likely to have highly inelastic supply curves.
3. Diamond rings and prime-location housing are given as examples of exactly this kind of good.
4. This is the opposite of the pizza, bread, books, and pencils example, which the source ties to highly elastic supply because inputs are readily available.
_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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