FIGURE 4- 3
-Refer to Figure 4- 3, which shows a demand shift and the short- run and long- run supply curves for some product. The diagram illustrates the general principle that
A) demand is less elastic in the long run.
B) both demand and supply are less elastic in the long run.
C) demand is more elastic in the long run.
D) supply is less elastic in the long run.
E) supply is more elastic in the long run.

Question

FIGURE 4- 3
-Refer to Figure 4- 3, which shows a demand shift and the short- run and long- run supply curves for some product. The diagram illustrates the general principle that
A) demand is less elastic in the long run. 
B) both demand and supply are less elastic in the long run. 
C) demand is more elastic in the long run. 
D) supply is less elastic in the long run. 
E) supply is more elastic in the long run.

Quizplus · Accepted Answer

In the long run, producers have more time to adjust to changes in demand, so they can increase or decrease output more easily. This makes supply more elastic in the long run.

FIGURE 4- 3 -Refer to Figure 4- 3, Which Shows a Demand Shift