The price elasticity of supply for milk in the short run has been estimated to be 0.36 while the price elasticity of supply for milk in the long run is estimated to be 0.51.That means that:
A) the supply of milk reflects the fact that the longer the time period the more price elastic is the supply.
B) the supply of milk reflects the fact that the longer the time period the less price elastic is the supply.
C) the supply of milk reflects the fact that the shorter the time period the more price elastic is supply.
D) both B and C are true.

Question

Quizplus · Accepted Answer

The increase in the price elasticity of supply from 0.36 in the short run to 0.51 in the long run indicates that suppliers are more responsive to price changes over a longer time period, making the supply more price elastic as time increases.

The Price Elasticity of Supply for Milk in the Short