The correct option is (b).
Haircutting business has an elastic supply.
Further Explanation:
The elasticity of supply:
The elasticity of supply is calculated by the ratio of change in quantity supplied by the change in price.
• High elastic supply refers to that the supply is sensitive from the changes in the price of the product supplied.
• Low elastic supply means that it will be affected less from the price changes.
• No elastic supply refers to no relation to the price of the product or service.
Justification for the correct and incorrect option:
a.
Newspaper publishing: This option is incorrect.
The newspaper publishing has an inelastic supply because, if the factors of production, and the price will vary, the supply will be affected less.
b.
Haircutting: This option is correct.
As hair cutting has no inputs to invest in, and if the supplier raises the price of the service, then it can be an elastic supply.
c.
Electricity production: This option is incorrect.
The electricity production has an inelastic supply because it is affected less by the factors of production, and the price.
d.
Apple farming: This option is incorrect.
Apple farming is affected less by the factors of production, and the price, and apple farming has an inelastic supply.
Learn More:
1. Law of supply
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2. Demand and supply diagram
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3. Demand Curve
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Answer Details:
Grade: High school
Chapter: Supply
Subject: Economics
Keywords: Which of the following businesses has elastic supply, newspaper publishing, haircutting, electricity production, apple farming.
