As the period for firms to expand output is lengthened, the elasticity of the market supply curve will
A) approach zero.
B) increase.
C) decrease.
D) remain the same since time does not affect the elasticity of market supply.

Question

Quizplus · Accepted Answer

As the period for firms to expand output is lengthened, they have more time to adjust their production processes and resources, leading to an increase in the elasticity of the market supply curve.

As the Period for Firms to Expand Output Is Lengthened