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 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.
Over the short 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 long run, the elasticity of quantity supplied by firms tends to be more like the graph on the left.
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Answer 1

In the context of elasticity of supply, the correct statements regarding the short run and long run are as follows:

1. Over the short run, the elasticity of quantity supplied by firms tends to be more like the graph on the left. This is because, in the short run, firms have less flexibility to adjust their production levels in response to price changes, resulting in a steeper supply curve (inelastic supply).

2. Over the long run, the elasticity of quantity supplied by firms tends to be more like the graph on the right. In the long run, firms have more time to adjust their production capacity, allowing for a greater responsiveness to price changes, resulting in a flatter supply curve (elastic supply).

Therefore, the correct choice from your options is:

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