The Diagram Concerns Supply Adjustments to an Increase in Demand

Multiple Choice

The diagram concerns supply adjustments to an increase in demand (D₁ to D₂) in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that

A) short-run adjustments are more economically efficient than are long-run adjustments.
B) the amount of time producers have to adjust to a change in demand is not a determinant of supply elasticity.
C) S₁ reflects a longer adjustment period for producers than does S₂.
D) S₂ reflects a longer adjustment period for producers than does S₁.