Due to capacity constraints, the price elasticity of supply for most products is:
A) the same in the long run and the short run.
B) greater in the long run than the short run.
C) greater in the short run than in the long run.
D) too uncertain to be estimated.

Question

Quizplus · Accepted Answer

In the long run, producers have more time to adjust their production capacity and resources in response to price changes, making the price elasticity of supply greater compared to the short run where adjustments are more limited and immediate.

Due to Capacity Constraints, the Price Elasticity of Supply for Most