Question

Example of demonstrates supply elasticity and supply inelasticity.

Answer 1

a CD fails to be a hit, stores discount it by 30%, and recording company lowers production by 50%
a CD fails to be a hit, stores discount it by 30%, and recording company lowers production by 50%

Answer 2

Answer: Supply elasticity = pizza, bread, books
Supply inelasticity = water, gasoline, housing