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.

---

Definitions:

Unemployment

The condition of being jobless and actively seeking employment.

Phillips Curve

An economic concept illustrating an inverse relationship between rates of unemployment and rates of inflation within an economy.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.

President Obama

President Obama refers to Barack Obama, the 44th president of the United States, serving from 2009 to 2017.