Which of the Following Explains Why Supply Is More Elastic

question 309

Multiple Choice

Which of the following explains why supply is more elastic as more time passes?

• A) It is difficult or impossible to increase the quantity produced in a short period of time.
• B) Consumers have more time to search for substitutes.
• C) Sellers try to take advantage of a high price in the short term.
• D) The supply curve becomes generally steeper as more time passes.
• E) There is no explanation for this phenomenon.

Understand the concept of implicit costs and their relevance to business economics.

Calculate and distinguish between accounting profit and economic profit.

Recognize explicit costs and their impact on a firm's financial statements.

Comprehend the relationship between economic profit, accounting profit, and normal profit.