Which of the following explains why supply is more elastic as more time passes?
A) Sellers try to take advantage of a high price in the short term.
B) It is difficult or impossible to increase the quantity produced in a short period of time.
C) The supply curve becomes generally steeper as more time passes.
D) Consumers have more time to search for substitutes.
E) There is no explanation for this phenomenon.

Question

Quizplus · Accepted Answer

Over time, firms can increase production capacity, which means that they can respond more effectively to changes in price by increasing output. In the short term, however, firms may be constrained by fixed production inputs or difficult to adjust production processes, leading to lower supply elasticity.

Which of the Following Explains Why Supply Is More Elastic