The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that
A)short-run adjustments are more economically efficient than are long-run adjustments.
B)the amount of time producers have to adjust to a change in demand is not a determinant of supply elasticity.
C)S₁ reflects a longer adjustment period for producers than does S₂.
D)S₂ reflects a longer adjustment period for producers than does S₁.

Question

The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that
A)short-run adjustments are more economically efficient than are long-run adjustments. 
B)the amount of time producers have to adjust to a change in demand is not a determinant of supply elasticity. 
C)S₁ reflects a longer adjustment period for producers than does S₂. 
D)S₂ reflects a longer adjustment period for producers than does S₁.

Quizplus · Accepted Answer

The Answer of  The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that
A)short-run adjustments are more economically efficient than are long-run adjustments. 
B)the amount of time producers have to adjust to a change in demand is not a determinant of supply elasticity. 
C)S₁ reflects a longer adjustment period for producers than does S₂. 
D)S₂ reflects a longer adjustment period for producers than does S₁.

The Diagram Concerns Supply Adjustments to an Increase in Demand