In differentiating between the short- and long-run elasticities, when economists talk about short-run elasticities,
A) b and c.
B) there is no need to mention short versus long run.
C) the only issues are price and quantity.
D) short-run elasticities are usually higher.
E) short-run elasticities are usually lower.

Question

Quizplus · Accepted Answer

When economists talk about short-run elasticities, they are usually referring to the immediate response of quantity demanded or supplied to a change in price. In the short run, consumers and producers may not have enough time to adjust to a price change, so the elasticity of demand or supply is usually lower. In the long run, however, consumers and producers have more time to adjust, so the elasticity of demand or supply may be higher.

In Differentiating Between the Short- and Long-Run Elasticities, When Economists