QuestionJune 18, 2025

In the long run producers can be more flexible and therefore, price elasticity of supply is more elastic. True False

In the long run producers can be more flexible and therefore, price elasticity of supply is more elastic. True False
In the long run producers can be more flexible and therefore, price elasticity of supply is more
elastic.
True
False

Solution
4.5(207 votes)

Answer

True Explanation 1. Define Price Elasticity of Supply Price elasticity of supply measures how much the quantity supplied responds to changes in price. 2. Analyze Long-Run Flexibility In the long run, producers can adjust all inputs and production processes, making supply more responsive to price changes. 3. Conclusion on Elasticity Greater flexibility in the long run leads to a more elastic supply.

Explanation

1. Define Price Elasticity of Supply<br /> Price elasticity of supply measures how much the quantity supplied responds to changes in price.<br /><br />2. Analyze Long-Run Flexibility<br /> In the long run, producers can adjust all inputs and production processes, making supply more responsive to price changes.<br /><br />3. Conclusion on Elasticity<br /> Greater flexibility in the long run leads to a more elastic supply.
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