Supply tends to be more elastic in the long run because

firms have time to change all inputs and new firms can enterCorrect answerYour answerprices are fixed in the long runCorrect answerYour answerdemand falls in the long runCorrect answerYour answercosts rise in the long runCorrect answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Given time, producers can expand plants and others can join, so output responds more to price.

Concept: Time and elasticity of supply
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsPrice elasticity of supply

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Ten questions from Perfect Competition & Supply, at your own pace.

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Ten questions from Perfect Competition & Supply, at your own pace.

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Supply tends to be more elastic in the long run because

Explanation