Figure 5-20
-Refer to Figure 5-20. Which supply curve is most likely relevant over a very long period of time?
A)S1
B)S2
C)S3
D)All of the above are equally likely to be relevant over a very long period of time.

Question

Figure 5-20 
-Refer to Figure 5-20. Which supply curve is most likely relevant over a very long period of time?
A)S1 
B)S2 
C)S3 
D)All of the above are equally likely to be relevant over a very long period of time.

Quizplus · Accepted Answer

Over a very long period of time, it is likely that technology will advance and the cost of production will decrease, causing the supply curve to shift to the right. This aligns with S3, which shows a shift to the right and a decrease in the cost of production. S1 and S2 do not show this shift over a long period of time.

Figure 5-20 -Refer to Figure 5-20. Which Supply Curve Is Most Likely