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

Answer 1

The correct response would be:

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, firms have limited ability to adjust their production in response to price changes, resulting in a steeper supply curve (like the graph on the left), indicating inelastic supply. In the long run, firms can adjust their production capacity more freely, leading to a more elastic supply curve (similar to the graph on the right, with a gentler slope).