For Outback Steakhouse, seating capacity is limited in the short run. In the long run, they can add as many seats as they want. Therefore, the price elasticity of supply for meals at Outback would be ________ in the short run than in the long run.
A)higher
B)lower
C)the same
D)more variable

Question

Quizplus · Accepted Answer

The price elasticity of supply is lower in the short run because the quantity supplied cannot be quickly changed in response to a price change.

For Outback Steakhouse, Seating Capacity Is Limited in the Short