The Short-Run Elasticity of Supply Is Less Than the Long-Run

question 91

Multiple Choice

The short-run elasticity of supply is less than the long-run elasticity of supply

• A) because consumers' tastes and preferences change in the long run but not in the short run.
• B) because producers can adjust the amount of machinery in the long run but not in the short run.
• C) only for durable goods.
• D) only for nondurable goods.

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the manufacturing or production of goods or services.

Estimated

An approximation or a preliminary calculation of figures based on available data or trends.

Raw Materials Production Needs

The quantity of raw materials required to meet the production schedule, considering inventory levels and future production rates.