For which of the following products or services is supply likely to be inelastic in the short term regardless of whether prices rise or fall?

Question

staples

cargo ships

newspapers

haircuts

Answer 1

Inelastic supply means that the quantity supplied does not change significantly in response to price changes. Among the options provided:

1. Staples - These are everyday goods with relatively stable supply.
2. Cargo ships - The supply of cargo ships is typically inelastic in the short term due to the high cost and time associated with building new ships.
3. Newspapers - The supply of newspapers can be adjusted fairly quickly in response to demand changes.
4. Haircuts - The supply of haircuts is generally flexible and can be adjusted based on demand.

Considering these factors, cargo ships are likely to have an inelastic supply in the short term, regardless of price fluctuations.