PRC-3 · Chapter 11 · Question 40 of 57
Which type of goods generally possess a 'more elastic' supply curve because they can be easily stored in warehouses without rotting while waiting for better prices?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Manufactured durable goods (like electronics)
Explanation
Durable manufactured goods have highly elastic supply because they can be stockpiled and released quickly into the market when prices rise, unlike perishables.
More Elasticity of Demand and Supply MCQs
- Q42If a 5% increase in price causes absolutely no change in the quantity supplied of a good, the elasticity of supply is:
- Q43Which of the following products is likely to have the lowest price elasticity of demand?
- Q44What is the shape of a demand curve that has a strictly constant slope throughout?
- Q45If a geometric supply schedule has a price elasticity of supply exactly equal to 1 at all points, its graph will be:
- Q46The elasticity of supply for highly perishable agricultural goods (like fresh milk or ripe strawberries) on market day is generally: