Suppose the price of a television set rises by 10 percent.Which one of the following would we expect to be the most elastic following such a price change?
A)the momentary supply of television sets
B)the short-run supply of television sets
C)the long-run supply of television sets
D)the momentary demand for television sets
E)the normal demand for television sets

Question

Quizplus · Accepted Answer

The long-run supply of television sets would be the most elastic because in the long run, firms have more time to adjust their production levels and inputs, such as labor and capital, in response to changes in the market price. This allows for a greater responsiveness of quantity supplied to changes in price, resulting in a more elastic supply curve.

Suppose the Price of a Television Set Rises by 10