The Long-Run Supply Curve for a Product Differs from the Short-Run

question 52

Multiple Choice

The long-run supply curve for a product differs from the short-run supply curve in that the long-run supply curve is usually

• A) vertical.
• B) more inelastic.
• C) more elastic.
• D) of unitary elasticity.

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Definitions:

Demand for Gasoline

Describes how much gasoline consumers want to buy at various prices, often influenced by factors like income and price of substitutes.

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes little when its price changes.

Short Run

A time period in economics during which at least one input or factor of production is fixed and cannot be changed, limiting the immediate response to changes in demand or technology.

Long Run

A period in economics sufficient for all factors of production and costs to be variable, allowing firms to adjust to market conditions fully.