The short-run elasticity of supply is less than the long-run elasticity of supply
A) because consumers' tastes and preferences change in the long run but not in the short run.
B) because producers can adjust the amount of machinery in the long run but not in the short run.
C) only for durable goods.
D) only for nondurable goods.

Question

Quizplus · Accepted Answer

In the short run, producers have limited flexibility to adjust their production capacity, such as machinery, labor, and raw materials. However, in the long run, producers can adjust all factors of production according to changes in demand, including machinery. Hence, the long-run elasticity of supply is greater than the short-run elasticity of supply.

The Short-Run Elasticity of Supply Is Less Than the Long-Run