Supply curves tend to be:
A)perfectly elastic in the long run, because consumer demand will have sufficient time to adjust fully to changes in supply
B)more elastic in the long run, because there is time for firms to enter or leave the industry and to change the size of factories
C)perfectly inelastic in the long run, because the law of scarcity imposes absolute limits upon production
D)less elastic in the long run, because there is time for firms to enter or leave an industry

Question

Quizplus · Accepted Answer

In the long run, firms have the ability to enter or leave an industry, as well as adjust the size of factories or production methods, allowing them to respond more effectively to changes in supply and demand. Therefore, supply curves tend to be more elastic in the long run.

Supply Curves Tend to Be