question archive Which of the following scenarios is likely to make the supply of Maine lobsters more elastic? A
Which of the following scenarios is likely to make the supply of Maine lobsters more elastic? A
Subject:EconomicsPrice:2.88 Bought3
Which of the following scenarios is likely to make the supply of Maine lobsters more elastic?
A. Lobster locating technologies improve.
B. Time passes to allow lobstermen to adjust to market conditions.
C. The prices of butter, potatoes, and lobster bibs decrease.
D. The price of lobster increases by $2 per pound.
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The price elasticity of supply refers to a measure, which aims at showing the elasticity of the supplied quantity of the services and goods to the price changes. Thus, when time passes in order to allow lobsterman to adjust himself to the different circumstances of the market, it would lead to elasticity in the supply of the Maine lobsters. (Correct answer: B)
