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The supply of apples is determined by the size of orchards, the number of apple trees, and the quantity of apples per tree
The supply of apples is determined by the size of orchards, the number of apple trees, and the quantity of apples per tree. The quantity of apples per tree depends on the weather and the amount of fertilizer and pesticides that farmers use. Given all these factors that affect supply, is the long-run supply for apples likely to become more elastic or more inelastic than the short-run supply?
A) The elasticity of supply will be the same in the short and long run.
B) The long-run supply for apples will be more inelastic.
C) The long-run supply for apples will be more elastic.
Expert Solution
There are four seasons in every calendar year. The weather and the amount of fertilizer and pesticides used to produce the apples have no effect on the size of the orchards and the number of apple trees in the short and long run.
In the short run, the price of apples should be inelastic because the orchards can't immediately respond to a change in the price of apples because of the weather. In the long run, all factors of production can be used to increase supply because changes in supply in the short run can be prohibitively expensive. This means that the long-run supply of apples will be more elastic than the short-run supply; therefore, the answer is C.
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