Generally, long-run elasticities of supply are:
A) greater than short-run elasticities, because existing inventories can be exploited during shortages.
B) greater than short-run elasticities, because consumers have time to find substitutes for the good.
C) greater than short-run elasticities, because firms can make alterations to plant size and input combinations to be more flexible in production.
D) smaller than short-run elasticities, because the firm has made long-term commitments it cannot easily modify.
E) the same as short-run elasticities, because technology is not assumed to change in the long-run adjustment process.

Question

Quizplus · Accepted Answer

In the long-run, firms have more flexibility to change their plant size and input combinations, making it easier to adjust their output levels in response to price changes. This increased flexibility leads to greater long-run supply elasticity compared to the short-run.

Generally, Long-Run Elasticities of Supply Are