All things equal, the price elasticity of supply
A) will be smaller in the short run than in the long run.
B) will be smaller in the long run than in the short run.
C) is the same for the short run and the long run.
D) approaches zero in the long run.

Question

Quizplus · Accepted Answer

In the short run, producers have limited ability to change production levels, making supply less elastic. In the long run, they can adjust all inputs, making supply more elastic.

All Things Equal, the Price Elasticity of Supply