A Key Determinant of the Price Elasticity of Supply Is

question 26

Multiple Choice

A key determinant of the price elasticity of supply is the time period under consideration.Which of the following statements best explains this fact?

• A)Supply curves are steeper over long periods of time than over short periods of time.
• B)Buyers of goods tend to be more responsive to price changes over long periods of time than over short periods of time.
• C)The number of firms in a market tends to be more variable over long periods of time than over short periods of time.
• D)Firms prefer to change their prices in the short run rather than in the long run.

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Definitions:

Detailed Income Statement

A comprehensive financial statement that summarizes a company’s revenues, expenses, and profits/losses over a specific period.

Business Activities

Economic actions undertaken by a company, ranging from operational to financial transactions.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net income or loss.

U.S. Adults

Individuals who are legally considered adults in the United States, typically age 18 and over, encompassing diverse demographics and backgrounds.