One of the business revolutions of the 1980s is "just in time" inventory, a system where businesses estimate their requirements for raw materials and keep no more on hand than is necessary to complete that period's production. What affect did the change to "just in time" inventory have on short-term supply elasticities?

What will be an ideal response?


"Just in time" inventory made supply more inelastic since there are not enough inputs to production on hand to allow quick increases in the rate of production.

Economics

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Economics