How Markets Work Unit Test

Question

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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 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.

Answer 1

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