If the short run elasticity of supply for a product is 0.8, in the long run elasticity, supply:
A)Is inelastic.
B)Is unit elastic.
C)Is elastic.
D)Any of the above could be true of the product's long run elasticity of supply.

Question

If the short run elasticity of supply for a product is 0.8, in the long run elasticity, supply:
A)​Is inelastic.
B)​Is unit elastic.
C)​Is elastic.
D)​Any of the above could be true of the product's long run elasticity of supply.

Quizplus · Accepted Answer

In economics, the elasticity of supply can change from the short run to the long run due to factors such as increased capacity, technological advancements, and the ability of firms to enter or exit the market. Therefore, the long run elasticity of supply for a product could be inelastic, unit elastic, or elastic, depending on these factors and adjustments.

If the Short Run Elasticity of Supply for a Product