Which answer ranks the elasticities of supply from highest to lowest?
A) market-day, short-run, long-run
B) short-run, long-run, market-day
C) long-run, short-run, market-day
D) short-run, market-day, long-run
E) long-run, market-day, short-run

Question

Quizplus · Accepted Answer

The elasticity of supply typically increases over time. In the market-day supply, producers cannot adjust their production, making it the least elastic. In the short-run, some adjustments can be made, and in the long-run, producers can fully adjust their production methods and capacities, making it the most elastic.

Which Answer Ranks the Elasticities of Supply from Highest to Lowest