Recall the Application About the Short-Run and Long-Run Elasticity of Supply

question 159

Multiple Choice

Recall the application about the short-run and long-run elasticity of supply of milk.If the price of milk increases by 20%,in the short run the quantity of milk supplied will increase by only 2% and in the long run it will increase by 50 %.Why is supply more price-elastic in the long run?

• A)Dairy farmers can expand existing facilities and build new ones,so farmers are more less responsive to a higher price.
• B)Dairy farmers can expand existing facilities and build new ones,so farmers are more responsive to a higher price.
• C)Dairy farmers can squeeze just a little more output from their existing production facilities.
• D)none of the above

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Definitions:

Cross-sectional View

An image or representation of an object or body part that is cut or viewed along a plane to expose its internal structure.

Sarcoplasm

The cytoplasm of a muscle fiber, containing organelles and proteins crucial for muscle contraction.

Blood Capillaries

The smallest blood vessels in the body, where the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste substances occurs between blood and tissues.

Muscle Fiber Type

Classification of muscle fibers based on their contraction speed and fatigue resistance, including Type I (slow-twitch) and Type II (fast-twitch).