Supply for a particular product:
A)has the same elasticity in the short run and long run
B)is more elastic in the long run than in the short run
C)is more elastic in the short run than in the long run
D)is more elastic the larger the product is in buyers' budgets
E)is more elastic when the product is a necessity than when it is a luxury

Question

Quizplus · Accepted Answer

In the short run, suppliers may not be able to adjust their production levels or inputs easily, which limits their ability to respond quickly to changes in demand or price. However, in the long run, suppliers have more flexibility to modify their operations, such as investing in new technology or finding alternative suppliers for inputs, which allows them to respond more readily to market conditions. As a result, the supply for a particular product tends to be more elastic in the long run than in the short run.

Supply for a Particular Product