FIGURE 5-4 -Refer to Figure 5-4. What Is the Significance of the of the Difference

question 51

Multiple Choice

FIGURE 5-4
-Refer to Figure 5-4. What is the significance of the difference in the slopes of the short-run supply curve S1) and the long-run supply curve S2) for apartments?

• A) Over time, the supply of apartments shrinks in response to the controlled prices - the elasticity of supply decreases.
• B) Over time, the demand for apartments shrinks in response to the controlled prices - the elasticity of supply increases.
• C) Over time, the demand for apartments increases in response to the controlled prices - the elasticity of supply increases.
• D) Over time, the supply of apartments increases in response to the controlled prices - the elasticity of demand increases.
• E) Over time, the supply of apartments shrinks in response to the controlled prices - the elasticity of supply increases.