How Do Producers Who Are Subject to a Binding Price

question 124

Multiple Choice

How do producers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

• A) Producers are increasingly willing to substitute away from producing the good,and their elasticity of supply becomes less elastic.
• B) There are no changes,and elasticity of supply remains unchanged.
• C) Producers are increasingly willing to substitute away from producing the good,and their elasticity of supply becomes more elastic.
• D) Producers are less willing to substitute away from producing the good,and their elasticity of supply becomes less elastic.
• E) Producers are less willing to substitute away from the good,and their elasticity of supply becomes more elastic.

---

Definitions:

Predictability

The ability to accurately forecast future events or behaviors based on current knowledge or analysis.

Mischel's Critique

Refers to psychologist Walter Mischel's argument against the consistency of personality traits, suggesting situational variables play a significant role in behavior.

Personality Variables

Characteristics or factors that can vary among individuals and contribute to differences in behavior and personality.

Personality Traits

Enduring characteristics or qualities that define an individual's behavior in various situations.