Supply curves tend to be
A)perfectly elastic in the long run because consumer demand will have sufficient time to adjust fully to changes in supply.
B)more elastic in the long run because there is time for firms to enter or leave the industry.
C)perfectly inelastic in the long run because the law of scarcity imposes absolute limits on production.
D)less elastic in the long run because there is time for firms to enter or leave an industry.

Question

Quizplus · Accepted Answer

Supply curves are generally more elastic in the long run because firms have time to adjust their production levels, and new firms can enter or existing firms can exit the industry in response to changes in market conditions. This increased flexibility in the market makes the supply curve more responsive to price changes over the long term.

Supply Curves Tend to Be