Which of the following scenarios is likely to make the supply of Maine lobsters more elastic?

• A. Lobsters requiring a longer time to reach maturity before they can be harvested.
• B. A decrease in the number of lobster fishers due to unfavorable weather conditions.
• C. Advancements in lobster fishing technology that allow fishers to quickly increase their catch in response to price changes.
• D. Strict government quotas that limit the total number of lobsters that can be harvested each season.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of price elasticity of supply, which measures how much the quantity supplied of a good responds to a change in its price. A more elastic supply means producers can increase output quickly when prices rise.
2. Step 2: Analyze each scenario to see how it affects the ability of lobster fishers to adjust their quantity supplied in response to price changes.
3. Step 3: Recognize that if lobsters take a longer time to mature, fishers cannot quickly increase supply, making supply less elastic.
4. Step 4: Note that a decrease in the number of fishers reduces the capacity to increase supply, also making supply less elastic.
5. Step 5: Identify that advancements in fishing technology enable fishers to catch more lobsters quickly when prices rise, increasing supply responsiveness and thus making supply more elastic.