question archive a) Would the short-run elasticity of supply for a football stadium be elastic, inelastic, perfectly elastic, or perfectly inelastic? Explain
a) Would the short-run elasticity of supply for a football stadium be elastic, inelastic, perfectly elastic, or perfectly inelastic? Explain
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a) Would the short-run elasticity of supply for a football stadium be elastic, inelastic, perfectly elastic, or perfectly inelastic? Explain.
b) Would it be the same for the long-run elasticity of supply? Why or why not?
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a)
In the short-run, the elasticity of supply for a football stadium would be perfectly inelastic. This is because it would be so difficult to increase the supply of football stadia as a result of an increase in the price.
b)
In the long-run, the elasticity of supply for football stadiums will not be perfectly inelastic. This is because, in the long-run, the suppliers of football stadia will have enough time to respond to an increase in the price of stadia.
