Questions: Which of the following goods probably has the highest price elasticity of supply? a) antique chairs b) baseball stadiums c) golf courses d) blue pencils

The answer is d) blue pencils.

Explanation for each option:

a) Antique chairs: The supply of antique chairs is relatively inelastic because they are unique and cannot be easily reproduced. The number of antique chairs available is limited to what has already been produced in the past, and new production is not possible.

b) Baseball stadiums: The supply of baseball stadiums is also inelastic. Building a new stadium requires significant time, resources, and planning. Therefore, the supply cannot be quickly increased in response to price changes.

c) Golf courses: Similar to baseball stadiums, the supply of golf courses is relatively inelastic. Developing a new golf course involves substantial land, investment, and time, making it difficult to quickly adjust the supply.

d) Blue pencils: The supply of blue pencils is likely to be highly elastic. Blue pencils are mass-produced goods, and manufacturers can quickly increase or decrease production in response to changes in price. The materials and processes required to produce blue pencils are readily available, allowing for a flexible supply.

In summary, blue pencils have the highest price elasticity of supply because they can be produced and supplied more easily and quickly compared to the other options listed.