As the Time Frame Shifts from the Short Run to the Long

question 129

Multiple Choice

As the time frame shifts from the short run to the long run,what happens to producers who are subject to a binding price floor?

• A) They are increasingly willing to substitute away from producing the good,and the supply curve becomes less elastic.
• B) There are no changes,and their elasticity of supply remains unchanged.
• C) They are increasingly willing to substitute away from producing the good,and the supply curve becomes more elastic.
• D) They are less willing to substitute away from producing the good,and the supply curve becomes less elastic.
• E) They are less willing to substitute away from the good,and the supply curve becomes more elastic.

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Definitions:

Monopsonistic Labor Market

A market condition where a single buyer (employer) controls the market for labor and determines wages and employment levels.

Labor Demand Data

Information and metrics related to the number of workers employers are willing and able to hire at different wage levels, across various industries or the economy as a whole.

Labor Supply Data

Information regarding the number of individuals available to work, including their skills and wage requirements.

Marginal Product

The additional output that is produced as a result of employing one more unit of a particular input, keeping other inputs constant.