-Which of the following statements is correct?
A)The diagrams portray neither long-run nor short-run equilibrium.
B)The diagrams portray both long-run and short-run equilibrium.
C)The diagrams portray short-run equilibrium, but not long-run equilibrium.
D)The diagrams portray long-run equilibrium, but not short-run equilibrium.
E)The diagrams both portray intermediate-run equilibrium

Question

-Which of the following statements is correct?
A)The diagrams portray neither long-run nor short-run equilibrium. 
B)The diagrams portray both long-run and short-run equilibrium. 
C)The diagrams portray short-run equilibrium, but not long-run equilibrium. 
D)The diagrams portray long-run equilibrium, but not short-run equilibrium. 
E)The diagrams both portray intermediate-run equilibrium

Quizplus · Accepted Answer

In economics, short-run equilibrium occurs when supply and demand are balanced, but not all factors of production are variable. Long-run equilibrium occurs when all factors are variable and markets clear. The statement suggests that the diagrams show a situation where short-run conditions are met, but not all long-run adjustments have occurred.

-Which of the Following Statements Is Correct