Which statement is true?
A)In the market period,industry supply is either perfectly elastic or very elastic.
B)In the short run,an increase in demand can lead to an increase in a firm's output.
C)In the market period,an increase in demand will lead to an increase in the firm's output.
D)Supply is less elastic in the long run than in the short run.

Question

Quizplus · Accepted Answer

In the short run, firms can adjust their output levels in response to changes in demand, leading to an increase in a firm's output if demand increases. This is because, in the short run, at least one factor of production is fixed, but firms can still adjust other factors to change output levels.

Which Statement Is True