Figure 4-8
-Refer to Figure 4-8.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

Question

Figure 4-8 
-Refer to Figure 4-8.Suppose the diagram shows the supply curves for a product in the short run and in the long run.Which supply curve represents supply in the short run and which curve represents supply in the long run?

Quizplus · Accepted Answer

In the short run, supply is less elastic due to fixed factors of production, so SA represents the short-run supply. In the long run, firms can adjust all inputs, making supply more elastic, so SB represents the long-run supply.

Figure 4-8 -Refer to Figure 4-8.Suppose the Diagram Shows the Supply Curves