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The Long-Run Price Elasticity of Supply Is Greater Than the Short-Run

Question 166

Multiple Choice

The long-run price elasticity of supply is greater than the short-run elasticity because


A) firms have more time to secure additional or different factors of production.
B) consumers react slowly to price increases.
C) firms react more slowly in the long run.
D) consumers react quickly to price decreases.
E) firms have fewer choices in the long run.

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