Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-Supply tends to be more elastic in the long run than in the short run.

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production processes and inputs, making it easier for them to increase or decrease supply in response to changes in demand. This tends to result in a more elastic supply curve in the long run.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation