FIGURE 5-4 -Refer to Figure 5-4.The difference between supply curve S₁ and supply curve S₂ in this market for apartments is that A)S₁ is not affected by a government controlled rental price. B)S₂ is not affected by a government controlled rental price. C)S₁ is more elastic than S₂. D)S₁ is a short-run supply curve and S₂ is a long-run supply curve. E)S₁ is a long-run supply curve and S₂ is a short-run supply curve.

Question

Quizplus · Accepted Answer

In economics, the short-run supply curve is typically less elastic than the long-run supply curve, reflecting the ability of producers to adjust more fully to price changes over time.

FIGURE 5-4 -Refer to Figure 5-4.The Difference Between Supply Curve S1 and S1

FIGURE 5-4 -Refer to Figure 5-4.The Difference Between Supply Curve S₁ and S₁