Compared to the short-run demand, the long-run demand for a resource is
A) less elastic.
B) more elastic.
C) equally elastic.
D) either more or less elastic; we cannot predict which.

Question

Quizplus · Accepted Answer

In the long-run, firms have more flexibility to adjust their production processes and substitute between different resources. Therefore, the long-run demand for a resource is generally more elastic than the short-run demand.

Compared to the Short-Run Demand, the Long-Run Demand for a Resource