Question

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

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

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 like both graphs.

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 left.**

In the short run, supply tends to be inelastic, which is represented by the steep slope of the line on the left. In the long run, however, supply becomes more elastic, resembling the gentle slope of the line on the right.