Figure 6-12 -Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run? A) S_B represents supply in the short run and S_A represents supply in the long run. B) Either S_A or S_B could represent supply in the short run; in the long run the supply curve must be a vertical line. C) Either S_A or S_B could represent supply in the long run; in the short run the supply curve must be a horizontal line. D) S_A represents supply in the short run and S_B represents supply in the long run.

Question

Quizplus · Accepted Answer

In the short run, supply is fixed and cannot be increased, so the supply curve is vertical. In the long run, supply can be increased, so the supply curve is upward sloping.

Figure 6-12 -Refer to Figure 6-12. Suppose the Diagram Shows the Supply