Question

Consider 2 markets for carpenters: the city of Portland and the United States. Draw 2 supply curves for the carpenters: one for the city of Portland and one for the US. In which market would you expect more elasticity supply of carpenters? If you can't draw the graphs describe their shape( steep, flat, upward sloping, downward sloping, etc)

In general, the smaller the market, the more likely the supply curve will be inelastic.