Choose the statement that correctly describes elasticity of supply for firms over the short run or long run.

Question

Graph on the Left. Graph of a line, on the coordinate plane. The X axis is labeled, Quantity Supplied. The Y axis is labeled, Price. The line, labeled S, rises from left to right with a steep slope. Graph on the Right. Graph of a line, on the coordinate plane. The X axis is labeled, Quantity Supplied. The Y axis is labeled, Price. The line, labeled S, rises from left to right with a gentle slope.



(1 point)
Responses

Over the short run, the elasticity of quantity supplied by firms tends to be like both graphs.
Over the short run, the elasticity of quantity supplied by firms tends to be like both graphs.

Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.
Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.

Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the right.
Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the right.

Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.

Answer 1

The correct statement is:

Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the right.

In the short run, firms typically have less flexibility to adjust their production levels, resulting in a more inelastic supply curve, which is represented by the gentle slope. In contrast, in the long run, firms have more time to adjust their production capabilities and resources, leading to a more elastic supply curve, which is represented by the steeper slope in the graph on the left.