Final answer:
The supply of dried blueberries is more elastic than fresh blueberries due to lower production and storage costs.
The supply for dried blueberries is more elastic than for fresh blueberries since they can be stored longer, affecting
Step-by-step explanation:
The supply of dried blueberries is more elastic than it is for fresh blueberries. Elasticity of supply refers to the responsiveness of the quantity supplied to changes in price. If the supply of a good is elastic, it means that a small change in price will result in a relatively larger change in the quantity supplied.
In the case of dried blueberries, the supply is more elastic because the production and storage costs are lower compared to fresh blueberries. Dried blueberries can be stored for longer periods of time without spoiling, allowing suppliers to adjust their production levels more easily in response to changes in price and demand.
The supply for dried blueberries is more elastic than for fresh blueberries since they can be stored longer, affecting the equilibrium quantity significantly when demand shifts. Business class air travel has higher elasticity of demand than economy due to its luxurious nature. Supply plays a bigger role in determining prices for luxuries like perfume due to their more elastic demand.
The supply of dried blueberries is likely to be more elastic than the supply for fresh blueberries. This is because dried blueberries can be stored and preserved for much longer periods, making their supply less sensitive to changes in price. Fresh blueberries, on the other hand, have a shorter shelf life and thus, their supply is more inelastic due to the immediacy with which they need to be sold before spoiling.
Regarding the question of whether elastic supply will have a larger effect on equilibrium quantity or price, it would typically have a larger impact on the quantity. When supply is elastic, producers are more responsive to changes in price, so any shift in demand can lead to significant changes in the quantity produced and sold without causing large changes in price.
As for the price elasticity of demand between different classes of air travel, transatlantic air travel in business class has an estimated elasticity of demand of 0.62, suggesting that it is somewhat responsive to changes in price. Meanwhile, economy class has a price elasticity of 0.12, indicating it is less responsive. The difference can be attributed to the nature of the goods; business class is more of a luxury with closer substitutes than economy class, which is more of a necessity for budget travelers with fewer substitutes.
In the context of essential goods like food versus luxury goods like perfume, supply is more likely to play a significant role in determining the price of luxuries. This is because the price elasticity of demand for necessities is generally inelastic, as consumers will continue to buy these items despite price changes. For luxuries, demand is more elastic, so supply changes can lead to more significant price fluctuations.