Given That Elasticity of Supply Changes Over Time,in the Short

question 55

Multiple Choice

Given that elasticity of supply changes over time,in the short run an increase in demand will generally cause

• A)the price to rise above its long-run equilibrium value.
• B)the price to rise to a level below its long-run equilibrium value.
• C)the quantity exchanged to rise above its long-run equilibrium value.
• D)both price and quantity exchanged to rise above their long-run equilibrium values.
• E)supply to change.

---

Definitions:

Total Revenue

The combined sum of earnings a company receives for its goods sold and services rendered over a particular time span.

Standardized Product

Goods or services that are uniform in quality and performance, allowing them to be interchangeable.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and ease of entry and exit, leading to no single firm influencing the market price.

Many Buyers

A market condition where there are numerous consumers for a product, enhancing competition and potentially reducing prices.