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

Question

 

(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 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.

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

Answer 1

Based on the typical characteristics of supply elasticity, the correct statement would be:

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

This statement reflects that in the long run, firms have more flexibility to adjust their production levels in response to price changes, leading to a more elastic supply curve. In contrast, in the short run (typically represented by a steeper supply curve), firms face more constraints in adjusting their output.

If you need to relate this to specific graphs, it's important to note that the elastic supply graph would generally show a larger responsiveness to price changes.