Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s).
-Recall the Application.In the short run,the supply curve for coffee is ________ and the elasticity of supply is ________ than in the long run.
A) steeper; larger
B) steeper; smaller
C) flatter; larger
D) flatter; smaller

Question

Quizplus · Accepted Answer

In the short run, the supply curve for coffee is steeper because producers cannot easily adjust their production levels due to fixed inputs, such as land and capital. Therefore, even a small change in price causes a relatively larger change in quantity supplied, resulting in a steeper supply curve. Additionally, the elasticity of supply is smaller in the short run because producers have limited ability to adjust their production levels. In the long run, on the other hand, producers can adjust their production levels by changing the quantity of all inputs, including land and capital, resulting in a flatter supply curve and a larger elasticity of supply.

Recall the Application About the Short-Run and Long-Run Elasticity of Supply