In the Long Run, the Supply Curve

question 62

Multiple Choice

In the long run, the supply curve

• A) is more elastic than it is in the short run.
• B) is less elastic than it is in the short run.
• C) exhibits no systematic sequence of changes in elasticity.
• D) exhibits no change in elasticity at all.

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Definitions:

Profit Per Unit

The amount of net income earned by selling one unit of a product, calculated as the sales price minus the cost of production per unit.

Aggregate Supply Curve

A graphical representation that shows the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living and inflation rates.

Explicit Resource Price

The monetary value that is directly paid for the use of a resource or asset, such as wages for labor or rent for land.