119k views
0 votes
If producers can easily switch production from strawberry jam to any other kind of? jam, then the elasticity of supply of strawberry jam will be

1 Answer

1 vote

Final answer:

The elasticity of the supply of strawberry jam would be high if producers could easily switch production from strawberry jam to any other kind of jam, as they can quickly adapt to changing market conditions.

Step-by-step explanation:

The elasticity of supply refers to the degree to which producers are willing and able to change the quantity supplied of a good or service in response to a change in price. In the context of this question, if producers can easily switch their production from strawberry jam to any other kind of jam, the elasticity of the supply of strawberry jam would be considered high. This is because producers can quickly adapt to changes in market conditions without significant costs or delays.

For example, if the demand for strawberry jam decreases and this pushes down the price, producers who can easily switch their operations to make, say, raspberry jam or grape jam, will do so to avoid losses. The ability to switch between the production of different types of jams means that the supply curve for strawberry jam is more elastic compared to a situation where producers could only make strawberry jam and nothing else.

User SiBrit
by
9.0k points