Answer to Question #242047 in Microeconomics for Tasnim

Question

What would the supply curve for super markets (in a given city) look like for a

time period of (a) the next twelve hours and (b) the next five months? Explain with

relevant graph.

Answer 1

For the supply curve, its slope depends on the time period. In the next 12 hours, the supply curve S1 for super markets will be relatively inelastic because of the supply constraints over a short period of time. Contrarily, in the next 5 months, the supply curve S2 will be relatively elastic because there is enough time to overcome supply constraints.