Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s). Recall the Application. What is the reason identified in the Application regarding why the short-run elasticity of supply of coffee is more inelastic than in the long run?
A. It takes at least 3 years for a newly planted coffee bush to yield marketable beans.
B. Coffee production is capital intensive, and the farmers cannot afford the additional capital.
C. Fertilizers are expensive in countries that produce coffee.
D. The government controls the supply of coffee in those countries.
Answer: A
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Other things constant, how will a decrease in the wages of teenagers affect the market for fast food hamburgers?
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