The Diagram Concerns Supply Adjustments to an Increase in Demand

question 387

Multiple Choice

The diagram concerns supply adjustments to an increase in demand (D₁ to D₂) in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that

• A)short-run adjustments are more economically efficient than are long-run adjustments.
• B)the amount of time producers have to adjust to a change in demand is not a determinant of supply elasticity.
• C)S₁ reflects a longer adjustment period for producers than does S₂.
• D)S₂ reflects a longer adjustment period for producers than does S₁.

---

Definitions:

Temperature Range

The variation between the minimum and maximum temperature values that an organism, device, or environment can endure or operate within.

Precipitation

Any form of water, such as rain, snow, sleet, or hail, that falls from the atmosphere to the Earth's surface.

Taiga

A biome characterized by coniferous forests, spanning across northern regions, and having cold temperatures and moderate precipitation.

Mediterranean Region

A geographical area surrounding the Mediterranean Sea, characterized by a climate with hot, dry summers and cool, wet winters, and noted for its unique flora and fauna.