Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The supply is elastic because the farmer can easily increase production in response to the price rise.
B
The supply is inelastic because the farmer cannot respond quickly to changes in price.
C
The supply is unit elastic since the price increase will not significantly affect the quantity supplied.
D
The supply is perfectly inelastic as the farmer cannot change the quantity supplied at all.
Understanding the Answer
Let's break down why this is correct
Answer
In this scenario, the price elasticity of supply for tomatoes is likely to be elastic. This means that when the price of tomatoes goes up, the farmer is able to quickly increase the quantity of tomatoes supplied to meet the higher demand. For example, if the price rises from $1 to $2 per pound, the farmer might increase production by planting more tomato seeds or harvesting more tomatoes from the fields. This responsiveness shows that the supply of tomatoes changes significantly with price changes, indicating that farmers can adjust their production relatively easily during seasonal fluctuations. Therefore, the supply of tomatoes is sensitive to price changes, which is a key characteristic of elastic supply.
Detailed Explanation
The supply is elastic. Other options are incorrect because This option suggests the farmer can't respond quickly; This option implies that the price change won't affect supply much.
Key Concepts
Price Elasticity of Supply
Market Behavior
Producer Response
Topic
Price Elasticity of Supply
Difficulty
easy level question
Cognitive Level
understand
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