Asked by Sanna Gunnarsson on Jun 20, 2024
Verified
Supply tends to be more elastic in the short run and more inelastic in the long run.
Elastic
Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in price.
Short Run
A period in economics during which the quantity of at least one input (such as plant size) is fixed and cannot be changed.
Long Run
A period in economics sufficient for all markets to adjust to equilibrium, including the adjustment of all production factors and prices of inputs.
- Acquire knowledge on the variances in elasticity of demand and supply over short and long durations.
Verified Answer
CC
Charlize CastilloJun 24, 2024
Final Answer :
False
Explanation :
Supply tends to be more inelastic in the short run because producers need time to adjust their production levels, whereas in the long run, they can adjust their production capacity, making supply more elastic.
Learning Objectives
- Acquire knowledge on the variances in elasticity of demand and supply over short and long durations.