Which of the following producers is most likely to face a relatively elastic supply curve in the short run?(1 point)

Question

Responses

an automobile manufacturer corporation
an automobile manufacturer corporation

a national chain of grocery stores
a national chain of grocery stores

a local restaurant who uses produce and ingredients from local farms
a local restaurant who uses produce and ingredients from local farms

an international shipping company

Answer 1

In the short run, the producer most likely to face a relatively elastic supply curve is a local restaurant who uses produce and ingredients from local farms.

This is because local restaurants have more flexibility to adjust their supply to changes in demand, especially if they source their ingredients from local farms, which can respond quickly to changes in market conditions. The availability of local products and the ability to vary their menu and offerings further contribute to the elasticity of their supply.

In contrast, the other options, such as an automobile manufacturer or an international shipping company, tend to have more rigid supply chains and longer production processes, making their supply less elastic in the short run. A national chain of grocery stores may have some flexibility, but not to the extent of a local restaurant that can more easily adjust its offerings based on immediate local supply conditions.