question archive Economics: What is a real-life example of Price Elasticity of Supply?
Subject:EconomicsPrice:2.88 Bought3
Economics: What is a real-life example of Price Elasticity of Supply?
In general, supply is found to be inelastic in the short run, as the suppliers could not change the quantity supplied as quickly as the changes in price. Many times, it is not easy in the short-run to increase the scale of production to supply more quantity in response to an improvement in price. However, the supply can be adjusted with more convenience in the long run in response to a price change.
Therefore, we need to think of examples where the increase in scale is easier, these can be the cases when an increase in the scale of production does not need a change in the fixed capital, rather increase in the variable inputs would be enough to increase supply. Examples can be books,CD production etc. Also, the supply of entertainers can be an example. If certain types of artists, let's say, classical singers are more praised and their performance prices rise then more and more aspiring singers may come to perform the art.