Question

Explain whether you would expect the elasticity of supply to be highly elastic or inelastic for fresh cut flowers and why.

PLEASE ANSWER THE QUESTION WITH THE REASONS AS FEW SENTENCES (A SHORT PARAGRAPH).

THANK YOU.

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Answer #1

The supply of the fresh flowers are considered as perfectly inelastic because the goods are perishable i.e. they cannot last for a long time. The elastic supply are those where the supply can be increases immediately in a short period of time but growing flowers take time and no flower produce will grow and excess production have a chance of loss in the market. OS producer of flower grow only what they can sell. If the demand increase the supply is not available readily making it inelastic.

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