The price elasticity of supply is __________ elastic over time because ___________.
A) less; producers get accustomed to the price changes
B) less; the ideal number of firms have time to move into or out of the industry
C) more; producers have a longer time to adjust their production decisions
D) more; producers get accustomed to the price changes

Question

Quizplus · Accepted Answer

The price elasticity of supply is more elastic over time because producers have a longer time to adjust their production decisions. This means that they can increase or decrease their production levels more easily in response to price changes. This is in contrast to the short run, where the amount of time available for producers to make adjustments is limited, leading to less elastic supply.

The Price Elasticity of Supply Is __________ Elastic Over Time