The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?

For this question, we need to talk about the price elasticity of supply of two things (1) frozen pizzas and (2) fresh vegetables. If supply is more price elastic, then that means that supply is more responsive to changes in price. If supply is more price inelastic, then that supply is less responsive to changes in price.For this question, we might argue that frozen pizzas are more elastic because we can store them in freezers and release them when demand increases. In contrast, fresh vegetables are less elastic because they take time to grow and cannot be stored for long periods of time, as they're perishable goods. However, we need a reasoned conclusion: we might argue that fresh vegetables and frozen pizzas actually have the same elasticity of supply if the frozen pizzas are not replaced when they are sold. We could even argue that fresh vegetables might be more elastic in the long run, because we can buy other factors of production (like tractors) to increase supply in the long run.

Answered by Tutor562273 D. Economics tutor

3443 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why the UK have different minimum wage rates for different age groups


Which one of the following is the most likely consequence of an increase in the division of labour in the production of smartphones?


What are the main causes of unemployment in the UK? CCEA 2013 Summer paper 2


State and explain a determinant of demand for a product.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences