Use the figure to answer the following question(s) .
Figure 12-1

If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

Question

Use the figure to answer the following question(s) .
Figure 12-1

If Figure 12-1 indicated the short-run and long-run supply curves for a resource, which of the following would probably be the long-run supply curve of the resource?

Quizplus · Accepted Answer

The long-run supply curve is typically more elastic than the short-run supply curve, meaning that producers have more time to adjust their production processes and find alternative resources. Therefore, the curve that is flatter (more horizontal) is likely to be the long-run supply curve. In this case, curve S_a is flatter than the other options and is therefore the most likely long-run supply curve.

Use the Figure to Answer the Following Question(s)