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 right.
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 like both graphs.
Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.
1 answer
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 (steeper slope) because firms have limited ability to change production levels quickly in response to price changes. In contrast, in the long run, firms have more flexibility and can respond more effectively to price changes, resulting in a more elastic supply (gentler slope) similar to the graph on the right.
