Chapter 4, Problem 10P

The price elasticity of supply for basmati rice (an aromatic strain of rice) is likely to be which of the following?

1. a. Higher in the long run than in the short run because farmers cannot easily change their decisions about how much basmati rice to plant once the crop has been planted.
2. b. High because consumers have many other kinds of rice and other staple foods to choose from.
3. c. Low in both the long run and the short run because rice farming requires only unskilled labor.
4. d. High in both the long run and the short run because the inputs required to produce basmati rice can easily be duplicated.