Which of the following statements is true?
A) Supply and demand tend to be much more elastic in the long run than in the short run.
B) Supply and demand tend to be much more inelastic in the long run than in the short run.
C) Supply is elastic in the short run, whereas demand is elastic only in the long run.
D) Supply is inelastic in the short run, whereas demand is inelastic only in the long run.

Question

Quizplus · Accepted Answer

In the long run, both supply and demand tend to be more elastic because firms and consumers have more time to adjust their behaviors and resources in response to price changes.

Which of the Following Statements Is True