How Do Producers Who Are Subject to a Binding Price

question 124

Multiple Choice

How do producers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

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

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Definitions:

Specialize In Producing

The practice of focusing production efforts on a limited range of goods or services to gain greater efficiency and quality.

Compasses

Devices designed to aid in finding one's way by indicating the direction in relation to the Earth's cardinal points.

Trade

The exchange of goods and services between people or entities, often in return for money.

Great Goals

Objectives that are ambitious, clear, and challenging, yet achievable, and that motivate individuals or teams to perform at their highest levels.