Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 5 - Part II - Elasticity and its Application - Quick Check Multiple Choice - Page 108: 4

Answer

Q4) Ans: option c -- The supply curve is more elastic

Work Step by Step

In the long run, factors of production can be adjusted more easily than in the short run. Hence, the supply can proactively respond to a price change. Therefore in the long run, firms can easily enter or exit the market over time based on the price of the commodity being sold in the market.
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