Which of the Following Statements Regarding Price Elasticity of Supply

question 37

Multiple Choice

Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?

• A) The longer is the time period for adjustment, the greater is the price elasticity of supply.
• B) The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms.
• C) The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.
• D) The shorter the time period for adjustment, the greater is the price elasticity of supply.

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Definitions:

Degrees of Freedom

The number of independent values or variables that are free to vary in a statistical analysis, critical for determining the significance of test results.

One-sample T Statistic

A statistical measure used to test whether the mean of a single sample differs significantly from a known or hypothesized population mean.

Normal Quantile Plot

A graphical method for assessing whether a set of data follows a normal distribution by plotting observed data against theoretically expected normal values.

T Procedure

A statistical method used to estimate the mean of a population, particularly when the sample size is small and the population standard deviation is unknown.