Use the following two statements to answer this question:
I. The supply of newly mined copper is more elastic in the long run than in the short run.
II. The supply of scrap copper is more elastic in the short run than in the long run.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Quizplus · Accepted Answer

Statement I implies that over time, more copper can be mined if there is an increase in demand, indicating a more elastic supply. Meanwhile, statement II suggests that in the short term, there may be a limited supply of scrap copper, resulting in a less elastic supply, and that more scrap copper may become available over time, making the supply more elastic in the long term. Both statements, therefore, support the idea that supply is more elastic in the long run, but the elasticity of supply varies depending on the type of copper being considered.

Use the Following Two Statements to Answer This Question