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 left.
Over the short 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.

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, supply tends to be inelastic (steeper slope), as firms have limited ability to adjust production levels quickly due to fixed factors of production. The graph on the right shows a gentler slope, indicating greater elasticity, which is more representative of long-run adjustments; therefore, the short-run behavior aligns more with the steep slope of the graph on the left, indicating inelastic supply.