Multiple Choice
(Figure) The figure shows two supply curves for two different periods for the same product. Based on the information in the graph, which statement is TRUE?
A) The flatter long-run supply curve implies that the price elasticity of supply is smaller compared to the short run.
B) The flatter long-run supply curve implies that the price elasticity of supply is greater compared to the short run.
C) The steeper short-run supply curve implies that the price elasticity of supply is equal to the long run.
D) The steeper short-run supply curve implies that the price elasticity of supply is larger compared to the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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