FIGURE 13- 4 The three diagrams below each show a supply curve for oil tankers over a relatively short period of time.

-Refer to Figure 13- 4.Consider the supply of oil tankers to an individual Canadian shipping firm,the North American shipping industry,and the world shipping industry.Which diagram best shows the supply of oil tankers that is relevant to an individual Canadian firm?
A)diagram 1
B)diagram 2
C)diagram 3
D)diagrams 2 or 3
E)diagrams 1 or 2

Question

FIGURE 13- 4 The three diagrams below each show a supply curve for oil tankers over a relatively short period of time.
 
-Refer to Figure 13- 4.Consider the supply of oil tankers to an individual Canadian shipping firm,the North American shipping industry,and the world shipping industry.Which diagram best shows the supply of oil tankers that is relevant to an individual Canadian firm?
A)diagram 1 
B)diagram 2 
C)diagram 3 
D)diagrams 2 or 3 
E)diagrams 1 or 2

Quizplus · Accepted Answer

Diagram 1 shows a relatively flat supply curve, which indicates that the supply of oil tankers to an individual Canadian shipping firm is relatively inelastic in the short run. This means that the firm cannot easily increase or decrease its supply of tankers based on changes in market conditions or demand. Diagrams 2 and 3 show steeper supply curves, which suggest that the North American and world shipping industries have more flexibility to adjust their tanker supplies in response to changing market conditions. Therefore, these diagrams are less relevant to the supply of tankers to an individual Canadian firm.

FIGURE 13- 4 the Three Diagrams Below Each Show a Supply