All Things Equal, the Price Elasticity of Supply

question 129

Multiple Choice

All things equal, the price elasticity of supply

• A) will be greater in the short run than in the long run.
• B) will be greater in the long run than in the short run.
• C) is the same for the short run and the long run.
• D) approaches zero in the long run.

---

Definitions:

Public Exchanges

Marketplaces where stocks, bonds, and other securities are traded among investors.

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.