In the long run,how does the quantity supplied of most goods respond
A)It cannot respond at all to a change in price.
B)It cannot respond much to a change in price.
C)It can respond substantially to a change in price.
D)It will tend to increase regardless of what happens to price.

Question

Quizplus · Accepted Answer

In the long run, producers have more flexibility to adjust their production levels and make changes to their inputs and technology. As a result, the quantity supplied of most goods can respond substantially to a change in price. This means that if the price of a good increases, producers will typically increase their quantity supplied to take advantage of the higher profits. Similarly, if the price of a good decreases, producers may reduce their quantity supplied to avoid losses.

In the Long Run,how Does the Quantity Supplied of Most