A supply curve in the long run is likely to be _____ than the supply curve in the short run because the price elasticity of supply in the long run is more _____.
A) steeper; inelastic
B) steeper; elastic
C) flatter; inelastic
D) flatter; elastic

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production levels in response to price changes, making the supply more elastic. Therefore, the long-run supply curve is flatter than the short-run supply curve.

A Supply Curve in the Long Run Is Likely to Be