You read online that, at current rates of production, the yearly world supply of food is sufficient to feed the projected 2050 population of earth, but that after 2050 there will be massive starvation. This prediction appears to assume that:
A)the long-run supply of food is perfectly elastic.
B)the long-run supply of food is perfectly inelastic.
C)the short-run supply of food is perfectly elastic.
D)the short-run elasticity of supply of food is greater than long-run elasticity of supply.

Question

Quizplus · Accepted Answer

This prediction appears to assume that the long-run supply of food is perfectly inelastic. Otherwise, as increases in the earth's population increase the demand for food, this should increase the price of food, leading to an increase in the quantity supplied (unless the supply of food is perfectly inelastic).

You Read Online That, at Current Rates of Production, the Yearly