Figure 6-12 -Refer to Figure 6-12.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run? A)S_B represents supply in the short run and S_A represents supply in the long run. B)Either S_A or S_B could represent supply in the short run; in the long run the supply curve must be a vertical line. C)Either S_A or S_B could represent supply in the long run; in the short run the supply curve must be a horizontal line. D)S_A represents supply in the short run and S_B represents supply in the long run.

Question

Quizplus · Accepted Answer

In the short run, firms cannot easily change the quantity of inputs they use to produce a good, thus the supply curve is relatively steep (S_A). In the long run, firms can adjust their inputs and production levels, allowing for greater flexibility and a flatter supply curve (S_B). Therefore, S_A represents supply in the short run and S_B represents supply in the long run.

Figure 6-12 -Refer to Figure 6-12.Suppose the Diagram Shows the Supply Curves