Which of the Following Explains Why Supply Is More Elastic

question 24

Multiple Choice

Which of the following explains why supply is more elastic as more time passes?

• A) Sellers try to take advantage of a high price in the short term.
• B) It is difficult or impossible to increase the quantity produced in a short period of time.
• C) The supply curve becomes generally steeper as more time passes.
• D) Consumers have more time to search for substitutes.
• E) There is no explanation for this phenomenon.

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Definitions:

Historical Data

Past information and records about an entity or market's performance, which are used for research, analysis, and planning.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole; it indicates how much the asset's price is expected to move relative to market movements.

Hurdle Rate

The minimum acceptable rate of return on an investment that a manager or company seeks before pursuing a project or investment.