58.1k 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

A. Perfectly elastic
B. Elastic
C. Inelastic
D. Perfectly inelastic

User Nithi
by
8.6k points

1 Answer

3 votes

Final answer:

The elasticity of supply for strawberry jam is elastic if producers can easily switch their production to different types of jam. This happens because the ability to swiftly alter production lines in response to price changes indicates a responsive supply curve.

Step-by-step explanation:

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 elastic. Elasticity of supply refers to how responsive producers are to a change in the price of a good. In this case, since producers can quickly adapt their production lines to produce different kinds of jam, they can respond efficiently to changes in market conditions, such as a price increase for another type of jam, leading to a potentially higher supply curve slope than if they could not switch as easily. This ability to switch between products without incurring significant costs or delays means that supply can expand or contract without significant impediments, characterizing an elastic supply.

User Matusalem
by
7.5k points