3.(a) Would the short-run elasticity of supply for a football stadium be elastic, inelastic, perfectly elastic,
or perfectly inelastic? Explain.
(b) Would it be the same for the long-run elasticity of supply? Why or why not?
4. (a) What happens to consumer and producer surplus after a rent control is established? Do they increase or decrease? Explain.
b) What happens to total welfare? Be sure to include the concept of deadweight loss in your explanation.
Answer 3: (a) The short-run elasticity of supply for a football stadium would be perfectly inelastic in short-run because in... View the full answer