Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-Supply curves applicable to shorter periods of time tend to:
A)be represented by horizontal lines parallel to the quantity axis.
B)be perfectly elastic.
C)be more inelastic than supply curves that apply to longer periods of time.
D)be more elastic than supply curves that apply to longer periods of time.
E)have a price elasticity of supply that is approximately equal to 1.

Question

Quizplus · Accepted Answer

In the short run, supply curves tend to be more inelastic because producers have less time to adjust their production levels in response to price changes.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation