All Things Equal, the Price Elasticity of Supply

question 56

Multiple Choice

All things equal, the price elasticity of supply

• A) will be smaller in the short run than in the long run.
• B) will be smaller 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.

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Definitions:

Antitrust Laws

Legislation designed to promote competition and prevent monopolies, oligopolies, and other practices that reduce market competition.

Microsoft

A global technology company known for its software products, including the Windows operating system and the Office suite.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 that outlawed monopolistic business practices.

Restraints of Trade

Practices or agreements that restrict free competition in business, often scrutinized for legality under antitrust laws.