Price elasticity of supply for the long run is
A) always greater than the long-run price elasticity of demand.
B) always zero.
C) perfectly inelastic.
D) always greater than the short-run price elasticity of supply.

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production levels and inputs, making them more responsive to changes in price. Therefore, the long-run price elasticity of supply is generally greater than the short-run price elasticity of supply. A and B are incorrect as they make generalizations that are not always true, and C is incorrect as perfectly inelastic supply means that quantity supplied does not change at all in response to changes in price.

Price Elasticity of Supply for the Long Run Is