Question

Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price?

Short answer

In conclusion, the industry that comes close to having near-infinite elasticity of supply in the short term is digital goods and services, particularly online course platforms. This is because they can easily replicate and deliver their products with minimal costs and resources, allowing them to quickly increase the quantity supplied in response to an increase in price.

Step-by-step solution

Elasticity of supply refers to the responsiveness of the quantity supplied to a change in the product's price. It is calculated by dividing the percentage change in the quantity supplied by the percentage change in the price. An industry with near infinite elasticity of supply can easily increase the quantity supplied with little limitations due to factors like production costs, resources, or time. #Step 2: Consider Digital Goods and Services#

While it's difficult to find an industry with near-infinite elasticity of supply, digital goods and services are prime examples as they come very close to this concept. This is because digital products like software, e-books, and online courses can be easily produced and replicated with minimal costs and resources as compared to physical goods. #Step 3: Example of a Digital Product with High Elasticity of Supply#

One example of a digital product with near-infinite elasticity of supply in the short term is an online course platform. When the price of a course increases and there is higher demand, the platform can easily add more users and deliver the course content to them without significantly increasing production costs or using additional resources. This allows the quantity supplied to be increased almost without limitations in response to an increase in price. #Step 4: Conclusion#

In conclusion, while it's difficult to find an industry with near-infinite elasticity of supply, digital goods and services come close due to their ability to be easily replicated and delivered with minimal costs. An example of a digital product with high elasticity of supply in the short term is an online course platform that can easily increase the quantity of courses supplied as the price increases.