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Assignment: Understanding Elasticity of Supply

Use the drop-down menu to complete each statement.

1. A good is considered _______ when producers can quickly supply more or less of it based on changing prices.
2. A good is considered _______ when producers cannot quickly change how much of it is supplied when prices change.



Answer :

GinnyAnswer

Final answer:

Elastic and inelastic goods differ in their responsiveness to price changes.


Explanation:

Elastic goods are considered luxury items where the percentage change in quantity supplied is greater than the percentage change in price, while inelastic goods are seen as necessities with a smaller percentage change in quantity supplied. Goods with unitary elasticity exhibit equal percent changes in quantity supplied and price.


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