Recall the Application About the Short-Run and Long-Run Elasticity of Supply

Multiple Choice

Recall the application about the short-run and long-run elasticity of supply of milk.If the price of milk increases by 20%,in the short run the quantity of milk supplied will increase by only 2% and in the long run it will increase by 50 %.Why is supply more price-elastic in the long run?

A) Dairy farmers can expand existing facilities and build new ones,so farmers are more less responsive to a higher price.
B) Dairy farmers can expand existing facilities and build new ones,so farmers are more responsive to a higher price.
C) Dairy farmers can squeeze just a little more output from their existing production facilities.
D) none of the above