2. Which of the following examples demonstrates elastic supply?
sesor a ar vingue lo
a. The price of submarine sandwiches rises 50 percent; the quantity supplied
by the deli rises 30 percent.
b. Gasoline prices rise from $1.50 to $3.00 a gallon, and refineries increase
production 10 percent.
sis
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c. Nurseries cut the price of rose bushes in half, but because the bushes are two
years old, supply remains fixed.
d. A CD fails to be a hit, stores discount it by 30 percent, and the recording
company lowers production by 50 percent.